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You have been offered two kind of corporate bonds and you need to make a recommendation which bonds should be selected to get the best

You have been offered two kind of corporate bonds and you need to make a recommendation which bonds should be selected to get the best investment return (it is also possible not to investment as well). Provide step by step calculation

The following are the information for the bonds: 1. The first bond is sell at discount 97.5%% with transaction cost 1% from its face value and value added cost 10% from its transaction cost. You decide that for the hurdle rate (required return) you will use data from credible bond rating agency. The other information about the bond is provided as follows:

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2. The second bond is sell at premium 102.5% with transaction cost 1% from its face value and value added cost 10% from its transaction cost. You decide that for the hurdle rate (required return) you will use data from credible bond rating agency. The other information abou the bond is provided as follows:

image text in transcribed

ANGKASA PURA II (PERSERO), PT Security name : Issuer : OBLIGASI BERKELANJUTANI ANGKASA PURA II TAHAP II TAHUN 2020 SERIA ANGKASA PURA II (PERSERO), PT IDA0001084A5 APIAO1ACN2 ISIN Code : Short Code : Type Listing Date Stock Exchange : Straight Bonds 14 Agustus 2020 : . IDX Status : Active Nominal : 32,000,000,000.00 : 0.00 Current Amount Mature Date Interest/Disc Rate : 13 Agustus 2023 : 7.896 : FIXED Interest Type Interest Frequency . 3 MONTHS Currency : IDR Form . Electronic Effective Date ISIN Day Count Basis Activity Sector OTHER SECTORS ANEKA GAS INDUSTRI Tbk, PT Security name Issuer ISIN Code : OBLBKUJT I ANEKA GAS INDUSTRI THP I TH2017 SERIB ANEKA GAS INDUSTRI Tbk, PT IDA2000810B2 AGII01BCN1 : Straight Bonds 07 Juni 2017 Short Code Type : Listing Date Stock Exchange : IDX Status - Active Nominal Current Amount Mature Date Interest/Disc Rate Interest Type : 19,000,000,000.00 : 19,000,000,000.00 06 Juni 2022 : : 10.35% . FIXED Interest Frequency - 6 MONTHS Currency IDR Form . Electronic Effective Date ISIN Day Count Basis Activity Sector . ENERGY ANGKASA PURA II (PERSERO), PT Security name : Issuer : OBLIGASI BERKELANJUTANI ANGKASA PURA II TAHAP II TAHUN 2020 SERIA ANGKASA PURA II (PERSERO), PT IDA0001084A5 APIAO1ACN2 ISIN Code : Short Code : Type Listing Date Stock Exchange : Straight Bonds 14 Agustus 2020 : . IDX Status : Active Nominal : 32,000,000,000.00 : 0.00 Current Amount Mature Date Interest/Disc Rate : 13 Agustus 2023 : 7.896 : FIXED Interest Type Interest Frequency . 3 MONTHS Currency : IDR Form . Electronic Effective Date ISIN Day Count Basis Activity Sector OTHER SECTORS ANEKA GAS INDUSTRI Tbk, PT Security name Issuer ISIN Code : OBLBKUJT I ANEKA GAS INDUSTRI THP I TH2017 SERIB ANEKA GAS INDUSTRI Tbk, PT IDA2000810B2 AGII01BCN1 : Straight Bonds 07 Juni 2017 Short Code Type : Listing Date Stock Exchange : IDX Status - Active Nominal Current Amount Mature Date Interest/Disc Rate Interest Type : 19,000,000,000.00 : 19,000,000,000.00 06 Juni 2022 : : 10.35% . FIXED Interest Frequency - 6 MONTHS Currency IDR Form . Electronic Effective Date ISIN Day Count Basis Activity Sector . ENERGY

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