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Eric wants to invest in government securities that promise to pay $ 1 , 0 0 0 at maturity. The opportunity cost ( interest rate
Eric wants to invest in government securities that promise to pay $ at maturity. The opportunity cost interest rate of holding the security is Assuming that both investments have equal risk and Erics investment time horizon is flexible, which of the following investment options will exhibit the lower price?
An investment that matures in five years
An investment that matures in four years
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