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Consider the two following investments which you will maintain for ten years. What is the lowest interest rate which Chase would have to offer you

Consider the two following investments which you will maintain for ten years. What is the lowest interest rate which Chase would have to offer you in order for you to invest your money with Chase instead of the zero-coupon bond?

a.     Purchase a zero-coupon bond, which pays $1000 in ten years, for a price of $500.

b.     Invest $500 for ten years in a Chase savings account.

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