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Dis is a listed company that operates in the mining sector, and the majority of its operations is in diamond mining. The company wants to

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Dis is a listed company that operates in the mining sector, and the majority of its operations is in diamond mining. The company wants to purchase a new intelligent machine that helps scan the ground where diamonds are mined. The new machine is gcing to cost R5,000,000. To fund this machine, the company has just issued a number of 5 -year corporate bonds, each with a coupon rate of 9.5% and a par value of R100,000. These bonds are currently trading in the bond market at R120,000 each: Dias has 100,000 issued shares at a current share price of R105 each, with a dividend yield of 5%. If you are considering investing R100,000, would you invest in one of the corporate bonds, or in shares in Dias? Include a caiculation, and explain your choice. (Max. 10 lines)

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