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Which of the following bonds would you pay more to invest in and why? Explain your reasons! A bond with a guaranteed payout of $300

  • Which of the following bonds would you pay more to invest in and why? Explain your reasons!
    1. A bond with a guaranteed payout of $300 at the end of a year
    2. A bond with a 5% chance of a $1000 payout and a 95% chance of a $100 payout
  • What are some of the most important risks associated with bonds?

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