Question: allocated resources overtime ? 5. Your cousin has asked for your advice on whether or not to buy a bond for s1000, which will make

 allocated resources overtime ? 5. Your cousin has asked for your

allocated resources overtime ?

5. Your cousin has asked for your advice on whether or not to buy a bond for s1000, which will make one payment of $1,300 four years from now, or invest in the local bank account that pays 6% a year. a) What is the internal rate of return on the bond's cash flows? b) Would you advise your cousin to purchase this bond or to invest in the local bank account? Justify your

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