Leigh Delight Candy, Inc is choosing between two bonds in which to inv

Leigh Delight Candy, Inc is choosing between two bonds in which to invest their cash. One is being offered
from Hershey’s and will mature in 10 years and pay $30 each quarter.

The other alternative is a Mars’ bond that
will mature in 20 years and pay $30 each quarter. What would be the present value of each bond if the discount
rate is 10% compounded quarterly, and each bond pays $1,000 at maturity?

ANSWER

Hershey’s: $1,125.51
Mars’: $1,172.26