Question: Jake has two options. Please find out which option should he choose based on return from both the option. Option A: Invest in a

Jake has two options. Please find out which option should he choose

Jake has two options. Please find out which option should he choose based on return from both the option. Option A: Invest in a bond paying 6% Coupon Interest Payment, 3 years maturity, $15000 Face Value. It is available in the market for $1500 Discount. Option B: Purchased 500 shares at $30 each. The par value of the share is $10 and received dividend 2 times. 1st year: 20% stock dividend, 2nd year: 10% stock dividend and 20% cash dividend. Sell the shares after 3 years at $24 each.

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