Kevin is considering investing in the bonds of one of the following companies:

Issuer

A Ltd$.$

Price quoted by broker.

B Ltd$.$

$$1,500$

$$1,500$

A Ltd$\text{'}$s bonds were issued $5$ years ago with a maturity date of $20$ years. The bond has a coupon rate of $15\%$ and pays interest semiannually.

B Ltd$\text{'}$s bonds were issued $3$ years ago with a maturity date of $25$ years. The bond has a coupon rate of $11\%$ and pays interest annually.

Required: If the yield on similar bonds is approximately $8\%$ which bond should Kevin invest in$?$ Show all calculations.