Financial Option 3: $30 Million Investment in BondsRationale for investment: The business that’s offering these bonds for sale contracts with anotherbusiness in China to assemble computer components. The Chinese business is known to have used childlabor in the past, but claims it has stopped this practice. However, the U.S. business selling these bondshas not investigated to verify whether these claims are true or not.Assumptions to consider:• 10-year bond• 8% coupon• Priced at a discount: $95• Discount rate is 9
I am having trouble on NPV or whether this is IRR. If possible, step-by-step breakdown would be helpful
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