Which of the following investments that pay will $$16,500$ in $12$ years will have a higher price today?

The security that earns an interest rate of $21\mathrm{.}75\%.$

The security that earns an interest rate of $14\mathrm{.}50\%.$

Eric wants to invest in government securities that promise to pay $$1,000$ at maturity. The opportunity cost $($interest rate$)$ of holding the security is

$5\mathrm{.}40\%,$ 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 six years

An investment that matures in five years