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A financial adviser suggests that his client select one of two types of bonds in which to invest $ 4 0 0 0 . Bond

A financial adviser suggests that his client select one of two types of bonds in which to invest $4000. Bond X pays a return of 10% and has a default rate of 5%. Bond Y pays 8% return and a default rate of 2%.Find the expected rate of return and decide which bond would be a better investment.

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