You can buy a $500 savings bond today for $250 and redeem the bond in 10 years for its full face value of $500. You could also invest in a money market account that pays 7% interest per year.

Which option is better, assuming they are of equal risk?

a The money market account is better because it pays more interest.

b The money market account is better because it requires a smaller investment.

c The savings bond is better because it earns a higher interest rate.

d The money market and savings bond both earn 7% interest, so they are equal in value. Cannot be determined.