Rockford Rebel, Inc. Intercompany Memo To: Justin Thompson, CFO From: Audrey Williston, Finance Manager Date: December 20, Year 0 Regarding: Investment in Bonds Justin, As you requested, I have located three companies with corporate bond offerings that we can choose from for the company's investment. These bonds all have a face value of $200,000 with interest payable annually. Our intent is to keep the bonds until their maturity dates. Company A: Matures in Year 5 and has a stated rate of 5% Company B: Matures in Year 6 and has a stated rate of 8% Company C: Matures in Year 7 and has a stated rate of 1% The current market yield on bonds is 6%. Alex is preparing a comparison schedule of these 3 bonds and will have it to you later today.