Which option should you choose

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Question - You have $7,000 to invest, and you do not need to collect on your investment for 16 years.

Option 1: You can buy a zero coupon bond with a face value of $12,000 that matures in 16 years.

Option 2: You can deposit the money into a CD account that matures in 16 years with an annual percentage yield (APR) of 6.902%.

Which option should you choose?

Reference no: EM133163258

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