A two year $1,000 par zero coupon bond is currently priced at $819 00 A two year $1,000 annuity is currently priced at $1,712 52 If you want to invest $50,000 in one of the two securities, which is a better buy ...

With PV 819 FV 1000 PMT 0 and N 2 the yield to ...

A two-year $1,000 par zero-coupon bond is currently priced at $819.00. A two-year $1,000 annuity is currently

Question:

A two-year $1,000 par zero-coupon bond is currently priced at $819.00. A two-year $1,000 is currently priced at $1,712.52. If you want to invest $50,000 in one of the two securities, which is a better buy?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...