Question
There are two bonds and you have $5,000 of seed money for your investment. STHM bond will mature in 20 years later at repayment of
There are two bonds and you have $5,000 of seed money for your investment. STHM bond will mature in 20 years later at repayment of $16,000. TEMPLE bond will mature in 17 years later at repayment of $14,000. Until then there is no interest for both bonds.
a) Calculate the yearly rate of return for both bonds.
b) Which of bonds is more attractive?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
