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Hearty Plc is considering investing some of its surplus funds. It wants a return of 15%. It is currently considering two bonds with a 100

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Hearty Plc is considering investing some of its surplus funds. It wants a return of 15%. It is currently considering two bonds with a 100 par value: Bond A has a coupon rate of 12% and will be redeemed at par value in 2 years-time. The current Market price is 95. Bond B has a coupon rate of 8% but carries at redemption an additional share warrant that has been calculated to be worth 10 in two years-time. The current Market price is also 95. (a) Should the company consider buying Bond A, Bond Bor both

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