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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

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

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