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As of today, you have money to make a down payment on a house which you expect to buy in five years. You are considering

image text in transcribedAs of today, you have money to make a down payment on a house which you expect to buy in five years. You are considering different ways to invest this money. Due to the uncertainty, you do not want to invest in stocks. Your choices are the following: 10-year Treasury bond, with semiannual coupons 5-year Corporate bond, single A rating from S&P, semiannual coupons 3-year zero coupon corporate bond, rated AA from S&P 5-year Treasury bond, with semiannual coupons 90-Day Treasury Bill 5-year Corporate bond, single B rating from S&P, with semiannual coupons Which bond would you choose to invest in? What factors did you consider? Explain your reasoning.

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Question 5 As of today, you have money to make a down payment on a house which you expect to buy in five years. You are considering different ways to invest this money. Due to the uncertainty, you do not want to invest in stocks. Your choices are the following: 10-year Treasury bond, with semiannual coupons 5-year Corporate bond, single A rating from S&P, semiannual coupons 3-year zero coupon corporate bond, rated AA from S&P 5-year Treasury bond, with semiannual coupons 90-Day Treasury Bill 5-year Corporate bond, single B rating from S&P, with semiannual coupons . Which bond would you choose to invest in? What factors did you consider? Explain your reasoning. Question 5 As of today, you have money to make a down payment on a house which you expect to buy in five years. You are considering different ways to invest this money. Due to the uncertainty, you do not want to invest in stocks. Your choices are the following: 10-year Treasury bond, with semiannual coupons 5-year Corporate bond, single A rating from S&P, semiannual coupons 3-year zero coupon corporate bond, rated AA from S&P 5-year Treasury bond, with semiannual coupons 90-Day Treasury Bill 5-year Corporate bond, single B rating from S&P, with semiannual coupons . Which bond would you choose to invest in? What factors did you consider? Explain your reasoning

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