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URGENT, PLEASE HELP In 2022, Momo was thinking about investing in two investment projects. The first investing choice named Reve is a twenty-year bond sold
URGENT, PLEASE HELP
In 2022, Momo was thinking about investing in two investment projects. The first investing choice named Reve is a twenty-year bond sold by S Corp. The principal value of the bond is AUD1,000, with an 8 percent discount charged early. It's going to sell at AUD1 ,350. The current borrowing rate in this period is five percent annually. The second investment that called Belpi is Lending to Jennie for twenty-years with annual payment of AUD110. For ennie you are thinking of 5.5percent per annum on the return of investment since she might go without paying back. What is the Duration of the bond? In your opinion, is it better if Momo buy this bond or not? And lastly, between those two, which one has greater PV?
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