Business

Shawn Phelps

29 July, 10:23

Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of holding the security is 5.40%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment options will exhibit the lower price? A: an investment that matures in 10 years? B: an investment that matures in 9 years

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