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QUESTION

1.Which investment would produce the higher total return over the next 8 months?

1. Which investment would produce the higher total return over the next 8 months?

•  a zero coupon bond with 8 months to maturity, selling at 96.00 per $100 of face value

•  a bank account that pays 6.00 percent Annual Percentage Rate compounded monthly

•  a stock whose return is continuously compounded at an annual rate of 5.90 percent

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