Consider you are ready to make your first investment in the following three investment alternatives: Alternative 1: Maxis bond that pays 10% on its par value in interest, sells for RM850, and matures in 12 years. For bonds of this risk class, you believe that a 12% rate of return should be require
QUESTION 2.b
Consider you are ready to make your first investment in the following three investment alternatives:
Alternative 1: Maxis bond that pays 10% on its par value in interest, sells for RM850, and matures in 12 years. For bonds of this risk class, you believe that a 12%
Alternative 2: Axiata
Alternative 3: Digi common stock selling for RM50. The stock recently paid a RM5 dividend. The company’s
Required:
b. Based your answer in (a) choose the best alternative(s) for your investment and provide the reason.
Note: No need excle formula , thank you
Step by step
Solved in 2 steps
