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QUESTION

you have extra money lying around and you want to do something with it but don't want to take on any risk.

you have extra money lying around and you want to do something with it but don't want to take on any risk. You find that you have a choice between a no risk mutual fund that is a mix of CDs and corporate bonds which yields 5% annually and a 3 year US treasury bond. The bond has a face value of $2,000. What is the highest price you would pay for the treasury bond?

yieldTimeFace valueValue 5%32000$1,727.68
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