Proposed two investments in lowrated corporate bonds

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Reference no: EM13874940

A stockbroker has proposed two investments in lowrated corporate bonds paying high interest rates and selling at steep discounts (junk bonds). The bonds are rated as equally risky and both mature 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: EM13874940

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