You are considering an investment in one of the following bonds:
|
Coupon Rate |
Maturity |
Price/ 100 Par Value |
|
|
Bond A |
12% |
10 Year |
70 |
|
Bond B |
10 % |
06 Year |
60 |
(i) What is YTM of each bond?
(ii) Which bond would you recommend for investment?
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