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Suppose that john can buy a savings bond for 900 that

Suppose that John can buy a savings bond for $900 that matures in 3 years and pays John $1,000 with certainty. He is indifferent between this bond and another bond which is riskier but which pays 3% higher interest rate. How much, the riskier bond costs today if it pays $1,000 in 7 years.

$641
$784
$921
None of the above

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Business Economics: Suppose that john can buy a savings bond for 900 that

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