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8. Suppose there are two investment opportunities: Instrument A and Instrument B. If instrument A offers 14.2% of interest compounded semi-annually and instrument B offers
8. Suppose there are two investment opportunities: "Instrument A" and "Instrument B". If instrument A offers 14.2% of interest compounded semi-annually and instrument B offers 14% of interest compounded quarterly. (20 pts) a. Which instrument would you choose as an investor? Why? Explain and show your calculation. b. Suppose A and B are two different banks that you are going to take out a loan. Which bank would you prefer as a borrower? Why? Explain
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