Calculate yield to maturity of coupon bond face value

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a) Your financial advisor has given you the following advice. A great Investment for your $30,000,000 funds should be in long term corporate bonds offering an interest return of 20/25% per annum whereas short term government bonds are only offering much lower interest rates. Is the financial advice good? Give your recommendation and reasoning in no more than 350 words.

b) Calculate the yield to maturity of a coupon bond face value $30, 000, purchased for $15000.00 with an interest rate of 8% per annum that has 20 years to maturity and sold at 14 years.

Reference no: EM133070275

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