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7. (5 points) A relative dies in December 2020 and leaves for you a bond that can be cashed in December of 2025 for $3000.
7. (5 points) A relative dies in December 2020 and leaves for you a bond that can be cashed in December of 2025 for $3000. Your cousin offers you in trade a contract for a constant income stream of $525 per year until he cashes the bond in 2025. Assume you have access to a 6% rate and you're otherwise fi- nancially stable. Which option is financially a better deal for you: bond or business contract? Explain why
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