Calculate the yearly rate of return for both bonds

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Reference no: EM131084570

There are two bonds and you have $5,000 of seed money for your investment. STHM bond will mature in 20 years later at repayment of $16,000. TEMPLE bond will mature in 17 years later at repayment of $14,000. Until then there is no interest for both bonds.

a) Calculate the yearly rate of return for both bonds.

b) Which of bonds is more attractive?

Reference no: EM131084570

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