Business, 06.04.2021 01:00 journeyhile5

You have a choice between two different investment possibilities: Choice A: Buying a two-year $1,000 bond with an annual interest rate of %. You will receive the face value of this bond ($1,000) plus an interest payment when this bond matures at the end of two years. Choice B. Buying a one-year $1,000 bond with an annual interest rate of % and then, after one year, depositing the proceeds of this bond (face value plus interest) into a savings account for one year. The savings account is expected to pay an interest rate of %.

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