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How is the price of a financial asset related to the payments to be received from owning it? O A. Through the present value formula.
How is the price of a financial asset related to the payments to be received from owning it? O A. Through the present value formula. O B. Through the yield to maturity formula. O C. Through the net present value formula. O D . Through the future value formula. [Related to Solved Problem 3.1A] Suppose that you are considering investing $1,200 in one of the following bank CDs. CD 1, which will pay an interest rate of 8% per year for three years CD 2, which will pay an interest rate of 11% the first year, 8% the second year, and 3% the third year The future value of CD 1 is $ ), and the future value of CD 2 is $ . (Round your responses to the nearest cent.) Given the future values you calculated, which CD should be chosen? O A. CD 1 should be chosen. O B. CD 2 should be chosen
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