Question
You have $6,000 to invest, and you do not need to collect on your investment for 21 years. . Option 1: You can buy
You have $6,000 to invest, and you do not need to collect on your investment for 21 years. . Option 1: You can buy a zero coupon bond with a face value of $14,000 that matures in 21 years. . Option 2: You can deposit the money into a CD account that matures in 21 years with an annual percentage yield (APR) of 5.796%. Which option should you choose? Enter 1 or 2.
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
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