Question
You have been offered two kind of corporate bonds and you need to make a recommendation which bond should be selected to get the best
You have been offered two kind of corporate bonds and you need to make a recommendation which bond should be selected to get the best investment return (or not to invest). The following are the information for the bonds:
1. The first bond is sell at discount 97.5% with transaction cost 2% from its face value. The other information about the bond is provided as follows:
BANK CENTRAL ASIA Tbk, PT
Security name : OBL SUB BKLJT I BANK CENTRAL ASIA THP I TH18 SR B
Issuer : BANK CENTRAL ASIA Tbk, PT
ISIN Code : IDA0000918B3
Short Code : BBCA01BSBCN1
Type : Straight Bonds
Listing Date : 06 Juli 2018
Stock Exchange : IDX
Status : Active
Nominal : 65,000,000,000.00
Current Amount : 65,000,000,000.00
Mature Date : 05 Juli 2030
Interest/Disc Rate : 8%
Interest Type : FIXED
Interest Frequency : 3 MONTHS
Currency : IDR
Form : Electronic
Effective Date ISIN : -
Day Count Basis : -
Activity Sector : BANK
Number of Securities : 0 (Total)
2. The second bond is sell at discount 98% with transaction cost 1% from its face value. The other information about the bond is provided as follows:
GLOBAL MEDIACOM Tbk, PT
Security name : OBLIGASI BERKELANJUTAN III GLOBAL MEDIACOM TAHAP II TAHUN 2022 SERI B
Issuer : GLOBAL MEDIACOM Tbk, PT
ISIN Code : IDA0001278B1
Short Code : BMTR03BCN2
Type : Straight Bonds
Listing Date : 19 September 2022
Stock Exchange : IDX
Status : Active
Nominal : 139,160,000,000.00
Current Amount : 0.00
Mature Date : 16 September 2025
Interest/Disc Rate : 10%
Interest Type : FIXED
Interest Frequency : 3 MONTHS
Currency : IDR
Form : Electronic
Effective Date ISIN : -
Day Count Basis : -
Activity Sector : INVESTMENT COMPANY
Number of Securities : 0 (Total)
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