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part ahas tow question a) You subscribed US $200,000 for a corporate bond A with a coupon rate of 6.5% per annum and a maturity

part ahas tow question
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a) You subscribed US $200,000 for a corporate bond A with a coupon rate of 6.5% per annum and a maturity period of 2 years. You intend to hold on to this bond until maturity. How much bond interest will you get in the two years? What is your investment yield % for the two years holding period? (4 marks) b) You also purchased a mutual fund B which charges a front-end load of 2% and an expenses ratio of 1.4%. Assume the rate of return on the fund's portfolio (before any fees) is 8% per year and you hold on to this fund for 2 years and reinvest 1st year investment return in year 2. Would bond A or fund B give you a higher investment yield? (4 marks)

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