Principle 3 of finance says that risk requires a reward. You have an opportunity to invest $10,000 in one-year government-backed bonds. They pay 2% interest at the end of the year. Your friend also needs to borrow $10,000, and he has offered to repay you $10,200 at the end of the year. If these are your only 2 options, which should you invest in? Invest in the government-backed bonds.. Lend the money to your friend. Flip a coin since they both pay $200