An investor has $10,000 to invest in either a bond that matures in 5 years or a

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An investor has $10,000 to invest in either a bond that matures in 5 years or a business that will produce a continuous stream of income over the next 5 years with rate of flow f(t) = 2,150. If both the bond and the continuous income stream earn 3.75%, compounded continuously, which is the better investment?

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College Mathematics For Business Economics, Life Sciences, And Social Sciences

ISBN: 978-0134674148

14th Edition

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

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