A stockbroker has proposed two investments in low rated 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. bond statevalue annual interest payment current market price with commission gen dev $1000 $72 $480 rjr 1000 105 630
(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%.