Mrs. Shalini is planning to invest in less-risky financial instruments. For the same, she has multiple options such as government bonds, treasury bills, commercial papers, post-office savings fund, and others. She has come to a conclusion regarding investment in bonds which has following features:

A Rs. 1,000 par value bond, bearing a coupon rate of 15% which will mature after 5 years.

1. Now she wants to know, if the required rate of return on the bond is 16%, what is its value? )

Also, she has another option available for a different bond investment, the details of which are as follows:

A Rs. 100 par value bond, bearing a coupon rate of 14 % payable semi-annually which will mature after 6 years.

2. She wants to calculate If the required rate of return on the bond is 12% p.a., what is its value?

1. Keep yourself in shoes of Mrs. Shalini and decide which investment among the two bonds to go for and why?