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You are considering the purchase of two zero coupon bonds, specifics below. ( A & B ) What are the values of each bond? (

You are considering the purchase of two zero coupon bonds, specifics below. (A & B) What are the values of each bond? (C) Explain why many individual investors prefer not to hold zero coupon bonds in a taxable account (recall we have discussed this in class at least twice). Please label your answers A, B & C:
Bond A: Remaining Term 15 years, rates on comparable securities 9%, par $1,000
Bond B: Remaining Term 8 years, rates on comparable securities 5%, par $1,000

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