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A company is offering to sell you an investment for a current price of $ 7 0 0 . The investment will repay you $

A company is offering to sell you an investment for a current price of $700. The investment will repay you $1,000 in seven years. If you require a 6% return, would you buy this investment?
A. Yes. $700 seems like a fair price
B. No. The most you are willing to pay is about $665
C. No. You do not like bond investments
D. Yes. A $300 gain over seven years is a 41% per year return
E. Cannot answer without knowing the risk of the bond
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