=5/ Investment A can be bought for 4 and will earn 1 per year over six years.

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=5/ Investment A can be bought for 4 and will earn 1 per year over six years. What is the yield to maturity? Investment B costs 6 and earns 2 over two years, then 1.5 over three years.

What is the yield to maturity? Which investment would you rather have? Why? Do you need to know what the minimum required rate of return is in order to make a decision?

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