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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