Wisconsin Warning Co. issued $5,000,000 of five-year, 8 % bonds with interest payable semi-annually at an effective interest rate of 11 %. It was determine the present value of the bonds payable were $ 4,434,520
Alabama Alarm Co. issued $4,000,000 of 7 year, 12% bonds with interest payable semiannually at an effective interest rate of 10%. It was determine the present value of the bonds payable were $ 4,396,064
Using the information above, which of the two investments do you recommend that our company, Sixpack Inc. invest in? Why should we invest in your choice?