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The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of 6 . 3 2 3 % paid annually. The
The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of paid annually. The second bond, issued by Malfoy Enterprises, has a coupon interest rate of paid annually.
a Calculate the selling price for each of the bonds.
c What is the total interest income that Mark could earn each year if he invested only in Crabbe bonds? How much interest would he earn each year if he invested only in Malfoy bonds? bonds. Your total calculation will include the interest Mark gets, the principal he receives when the bonds mature, and all the additional interest he earns from reinvesting the coupon payments he receives. bond is a better investment than the other. Why is that the case?
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