Your investment department has researched possible investments in corporate debt securities. Among the available investments are the following $100 million bond issues, each dated January 1, 2021 Prices were determined by underwriters at different times during the last few weeks, (EV of $1. PV of S1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of 51 Company Band Price 1. BB Corp. $108 million 2. DD Corp. $100 million 3. GG Corp. $ 90 million Stated Rate 13 120 111 Each of the bond issues matures on December 31, 2040, and pays interest semiannually on June 30 and December 31. For bonds of similar risk and maturity, the market yield at January 1, 2021, is 12% Required: Other things being equal, which of the bond issues offers the most attractive investment opportunity if it can be purchased at the prices stated? The least attractive? Most attractive investment Least attractive investment TABLE 2 Present Value of 51 $1 PV (1+0) 098 2.09 2.046 4.09 4.596 50 5:59 7.09 ROS 9.09 10.09 11.04 12.04 20.04 1099010 098522 098039 097561 097087096615 096154 095094 095235 094787 00040 093451 09391 09174) 0909090909009286 03133 2 098030 097066 0.90117 095181 094760 093151 093456 091573 090701059545 0.19000087540.35734 0.54166 01264051162 079719 06944 30.97059 0.95632 0.94332092860 091514 090194 01900017630 016354 085101 033962 0.11030079313 0.77211 0.75131 073119 011178 037870 409609 0.94216 0.92305 090595013549 017144 085180 0356 012270 080722 0.79209 070290071503 070143 065301 00587 63552 0472 5095147 0.92826 09057) 03 056361051197 012193 030245 078351 070533 074726 0,71399 06058 064993 0.02092 0945 05070040111 6 0.94305 0.91454 0.88797 0.56250 0.117430.81350 0.79031 0.76790 0.74622 0.72535 0.70496 0.4 0.63017 0.59617 0.36447 0.53464656663 0.33490 7 093272 0.0103 087056 034127 0.81309 0.78599 0.75992 0.7345) 071008 0.68744 066506 06927 056349 0 4701 051116 045166 045335 077901 # 092348 01771 085349 082075 941 0.75941 073009 070319 067684065160 062741 052201054037 OSO 040051 0 43393 040313 011257 90.91434 0.07459 083676 080073 070642 0.7337 0.70259 0.67390 064461 061761 050190 054193 0.0025 0.4600 410 19092 0.36061 0910 10 090529 086167 082035 0781200.74409 0.70192 0.67550 00199 061301052513 assay9 050835 046119 0.4221 038554 035211 0.37197 0.10153 10.39612 0.54893 0.80426 0.76714 0.71241 48495 0.649 061630.5 ass 0.5307 07509 04288 0.1759 0.15089031721 0.36** 01450 12 088745 0.33639 0.78549 0 74356 0 70138 066178 064460 058966 0.55654 05359 049097 044401 0.39711 35553 03186 028554035665 011216 13 0.57866 023403 077303 072542 0.68095 0.63940 060057 0.56427 050 049358 046684 041496 036770 0.33011 0.3 0.35751 022911 009346 14 086996 081165 0.75785 0.70773 0.66112 061778 037748 053997 050507 047257 0 4330 0.3877 034046 0 29925 0263 023199 020462 007789 15 0.16135079985 0.74301069047 064156 0.59689 035526 051672 0.4810304479) 041727 036245 031524 0 27454 023939 030900018270006491 16 0.85283 0.75503 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 049458 0.30345 0.33873 0.29189 0.35187 0.21763 0.15829 016313 0.05400 17 054438 077639 0.71416 005720 0.60502035730 051337 047318 043630 040245 0.37136 0.31657 027027 023107 0.19754 010) 014564 004507 15 033602 0.76491 070016064117 056739 053836 049363045280 041552 0.35147 004 0.29586 025025 0.21199 0.1796 015253 0 13001 0.01756 19 082774 075361 0.61643 0.62553 0.57039 05 2016 047464 043330 03957 036158 033051 0.27651 033171 019449 016351 01376 011011 003130 20 081954 0.74247 0.67397 061027 035368 50357 045639 041464 0.37689 03427301180 0252 031455 017443 014864 013405 010367 2008 21 0.81143 0.73150 0.65978 059539 0.53755 0.48557 0.43881 0.19879 0.3584 033456 0.2N16 0.24151 0.1934 0.16 0.135 am 0.09256 02174 24 078757 0.69954 0.62172 0528 0.49193 0.43796 039012 034770 031007 0.27066 0.2460 019715 015770 012640 01013) 000170 0658 DLZSA 25 0.77971 008921 060953053939 047761 042315 0.37512 031273 029530 026223 0.23300018425 014502011597 0.092.30 01 02 0104 25 0.75654 065910 057437 0 SOOBS 0.43705 0.35165 0.33345029157 025509 0.32332 0.19563 015040 01159100695500093 0.053 0.04 0.00007 9 0.74934 061936 056311 045866 043435 036875 0.2005 0 27902 024295 021168 01556 0.14056 010733 002 0.00304 03 2017 Sos 36 0.74192 0.63976 0.55207 0.47674 0.41199 0.35625 0,3053 0.26700 0.23138 0.30064 0.17411 0.13127 4.09938 0.07537 0.05731 0.14348 0 C 31 073458 0.63031 0.54125 0.46511 039999 034423 0.29616 025550 0.22036 0.19018 0.16435 0.12271 009202 0.00915005210-001933 0.00 0.0035 40 0.67165055126 045289 0.37243 030656 0.25357 0.20329 0.17193 014205 0 11746 0.09722 006678 0.04603 00318 0.03209 001500107 000
