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Business, 20.12.2019 21:31 alizeleach0123

Suppose that john can buy a savings bond for $500 that matures in ten years and pays john $1,000 with certainty. he is indifferent between this bond and another $500 bond that has some risk but on which the interest rate is 5% higher.
1. how much, to the nearest penny, does the riskier bond pay in ten years?
a. $1,275.91
b. $1,631.17
c. $1,422.63
d. $1,577.69

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