Question
You have an obligation to pay $1,488 in four years and 2 months. In which bond...
You have an obligation to pay $1,488 in four years and 2 months. In which bond would you invest your $1,000 to accumulate this amount, with relative certainty, even if the yield on the bond declines to 9.5% immediately after you purchase the bond? Motivate the answer with calculations.
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