Have a look at the various investment bonds below:

CANADA GOVERNMENT 1 YEAR BONDS 1%

Ford [1 YEAR BONDS] Interest rate paid 4.3460%

HERTZ CORP. [1 YEAR BONDS] Interest rate paid 5.5000%

GAMESTOP [1 YEAR BONDS] Interest rate paid 6.75000%

a) Pick one of the company bonds and explain why do you think

investing your money in that bond offers a much higher

interest rate than with government of Canada bonds?

Does this mean we should obviously invest in those company

bonds?

b) Your friend wants a 1 year loan from you to start a coffee

shop, what interest rate would you charge him? Higher or

lower than those seen here? BRIEFLY explain your answer.

According Financial Mathematics knowledge answer questions. Hurry it is my homework help me

Have a look at the various investment bonds below: CANADA GOVERNMENT 1 YEAR BONDS 1% Ford [1 YEAR BONDS] Interest rate paid 4.34609 HERTZ CORP. [1 YEAR BONDS] Interest rate paid 5.50008 GAMESTOP (1 YEAR BONDS) Interest rate paid 6.75000% a) Pick one of the company bonds and explain why do you think investing your money in that bond offers a much higher interest rate than with government of Canada bonds? Does this mean we should obviously invest in those company bonds? b) Your friend wants a 1 year loan from you to start a coffee shop, what interest rate would you charge him? Higher or lower than those seen here? BRIEFLY explain your