Solution-Explain which is a better buy

Explain which is a better buy

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A two-year $1,000 par zero-coupon bond is currently priced at $819.00. A two-year $1,000 annuity is currently priced at $1,712.52. If you want to invest $50,000 in one of the two securities, which is a better buy?

Reference no: EM131127589

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Explain which is a better buy : A two-year $1,000 par zero-coupon bond is currently priced at $819.00. A two-year $1,000 annuity is currently priced at $1,712.52. If you want to invest $50,000 in one of the two securities, which is a better buy?

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Explain which is a better buy

Reference no: EM131127589

Reference no: EM131127589

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