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Suppose the Chief Financial Officer (CFO) of a company is interested in raising funds for a major investment by issuing bonds of varying maturity to investors. One of the longer-term bonds being issued can be purchased for $75,000.00 per bond and pays $7,125.00 annually to the investor. What is the anual interest rate on this bond?John has to decide whether to buy a zero-coupon bond with very little risk that costs $950 and will pay $1080 in one year or put his money in a savings account with an annual interest rate of 12%. Compute the difference in the rate of return of the two investments. Round your answer to one decimal place Which of the two investments will John prefer? the zero-coupon bond the savings account

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Calculate the annual interest rate on the bond as follows Interest rate on the bond - Annual payments on the bonod Cost of th

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