You have saved $10,000 for a down payment on the purchase of a new car, however, since you plan to buy the car one year from today, you need to decide how to invest the money for one year. You are limited to one of two choices:

1. A Bond Fund with an expected return of 3%/year

2. A Stock Fund with an expected return of 7%/year.

Which fund is best? Explain why!