You have two investment opportunities:

$1.$ Buy a $1-$year zero$-$coupon bond with face value $$1,050$ and YTM$=5\%$

$2.$ Deposit $$1,000$ of your money at the bank at $5\%$ p$.$a$.$ for one year.

Which investment is better? Assume that the default risk of the bond and the deposit is the same

Group of answer choices

depends on expected inflation

Indifferent

$[1]$ is better

depends on market conditions

$[2]$ is better