Please solve without using excel and alpha. Please use PV of Bond Equation.

"13-Consider the following investments:

a) Estimate each investment below and discuss, briefly, which investment you would accept, stating the reason(s):

i. A bond that is selling in the market at 1,200. The bond has a 1,000 par value, pays annual coupon rate at 14%, and is scheduled to mature in 5 years. For bonds in this risk class you believe that a 12% rate of return is required.

ii. BMC's share is providing 17% as a rate of return to investors. This share has a beta of 2. The riskless rate of interest is 6 per cent and the risk premium for the market index is 4 per cent.

b) Consider two alternative investments in bonds with the same maturity detailed below. Bond A provides a 40% rate of return and bond B provides a 25% rate of return. Calculate the yield to maturity of each bond and discuss which investment you would accept, if any."