A zero coupon bond maturity in 20 years for rm1000 and


?Encik Ahmad is thinking of investing in one of the following 2 securities:

?Security 1

A 8 % bond currently selling for RM70 with 20 years to maturity, when it will be redeemed for RM1000; or

?Security 2

?A zero coupon bond maturity in 20 years for RM1000 and currently selling for RM214.

?How would you advise Encik Ahmad.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A zero coupon bond maturity in 20 years for rm1000 and
Reference No:- TGS02378950

Expected delivery within 24 Hours