Question: 9. US Treasury notes currently pay an effective annual rate (yield) of 4%. Your financial advisor offers you a savings product that his firm is

9. US Treasury notes currently pay an effective annual rate (yield)

9. US Treasury notes currently pay an effective annual rate (yield) of 4%. Your financial advisor offers you a savings product that his firm is selling for $1000 that matures in 4 years and pays $35 at the end of each year, plus the original $1000 at maturity (in other words, they are $1000 face value bond that pay a 3.5% coupon). If the savings product has the same risk as US treasuries, which is a better investment? What is the savings product's effective annual yield

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