Business, 08.02.2021 18:50 SMNS625

Deborah would like to invest a certain amount of money for two years and considers investing in a one-year bond that pays 4% and a two-year bond that pays 7%. Deborah is considering the following investment strategies: Strategy A: Buy a one-year bond that pays 4% and in one year buy another one-year bond.
Strategy B: Buy a two-year bond that pays 7% this year and 7% next year.

If the one-year bond that Dina can purchase in one year pays 9%, Deborah will choose:

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