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Which one of the following investments will be worth the most after 12 years (Choose the most correct option)? Investment 1: A fixed investment (NACM)
Which one of the following investments will be worth the most after 12 years (Choose the most correct option)?
Investment 1: A fixed investment (NACM) of R8.2 million, generating a return of 5.22% per annum.
Investment 2: A zero-coupon bond with a face value of R16 million and an initial maturity of 12 years. Assume that the annual required rate of return is 4.88%.
Investment 3: A Money Market Call Account (NACW) of R 9.5 million, generating a return of 3.82% per annum.
Alternatives:
A.Investment 3. B.Investment 2. C.Investment 1.
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