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Worth of corporate bonds

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Joan purchases a government bond for $10,000 that pays 7 percent annual interest. Jim purchases $20,000 worth of corporate bonds that pay 10 percent annual interest. Joan's goal is to earn $700 per year on her investment, and Jim's goal is to earn $2,000 per year on his investment.

a. Is Joan or Jim more efficient? Why?

Reference no: EM13155608

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