2–4. Suppose that you have $900 and want to invest the money for one year. There are three existing options.

a. The city of Rochester is selling bonds at $90 per unit. The bonds pay $100 at the end of one year when they mature (no other cash flows).

b. Put the money under your mattress.

c. The one-year interest rate of saving in the Chase Bank is 7 percent.

d. Which one will you choose? What is the opportunity cost of your choice? Explain.