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12. Two alternative investments are possible: - Buy a one year zero-coupon bond (nominal value 100 000) with price of 91 200,00 - Place 90
| 12. Two alternative investments are possible: | |||
| - Buy a one year zero-coupon bond (nominal value 100 000) with price of 91 200,00 | |||
| - Place 90 000 in a annual deposit with 9,2% interest rate. | |||
| a. Which investment offers the higher return? | |||
| b. What is deposit value, if interest is paid daily? | |||
| c. What are the risks of the two investment stragegies? Calculate in Excel | |||
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