You have $$9,500,$ which you plan to invest for a term of five years. The

following

choices are available:

$($i$)$ You can buy a five$-$year GIC at the current interest rate of $10\%$ p$.$a$.,$ interest

payable annually.

$($ii$)$ You can buy a five$-$year Miron Company bond with face value of $$10,000$ that pays $$375$ interest semi$-$annually.

$($iii$)$ Your neighbour, Ronald, who owns a small manufacturing company, urges you to loan him the money. He says he will pay you an increasing stream of interest as follows:

At the end of the fifth year, you will get back your $$9,500.$

$($a$)$ Which investment will you choose?

$($b$)$ Are there any factors other than the rate of return that should affect your

decision?