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1. (a) Which of the following is a better risk-free investment opportunity: i. Investing at a continuously compounded risk-free rate of 5%; ii. Investing at
1. (a) Which of the following is a better risk-free investment opportunity: i. Investing at a continuously compounded risk-free rate of 5%; ii. Investing at a monthly compounded risk-free rate of 5.5%? Justify your answer. (b) For the investment opportunity you chose in part (a), find the amount of money needs to be invested today to get $100,000 at the end of 10 years
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