Investments in low-rated corporate bonds

Reference no: EM13688841

A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discount (junk bonds). The bonds are rated as equally risky and both maure in 15 years.

a) Construct a choice table for interest rates from 0% to 100%

b) Which, if any, of the bonds should you buy if your MARR is 20%?

Reference no: EM13688841

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