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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 Eric's 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 six years
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