Company is refinancing its bank loans by issuing Eurobonds to investors. You are

Question

Company is refinancing its bank loans by issuing Eurobonds to investors. You are considering buyi9ng $18000 of these bonds, which will yeild 8.5% You are also looking at a U.S. bond with similar risk that will yeild 7.5%. You expect that interest rates will not change over the course of the next year, after which time you will sell the bonds you purchase.
a. How much will you make on each bond if you buy it, hold it for one year, then sell it for 18,000
On the eurobond you will make $__
On the U.S. Bond you will make ___

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