CSL is evaluating the following bonds for raising capital.

All of them pay interest semi-annually and has the following information:

Bond Par Coupon Years to Required

Value Rate Maturity Return

A $1,000 10% 12 8%

B $1,000 14% 10 10%

Required:

1. Determine the value of each bond given the above information
2. Which bond is better for CSL? What are some of the considerations CSL may need?

to make based on these calculations with respect to raising capital.