Question 1 Assume that you have $20,201 to invest in a term deposit, and there...
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Accounting
Question 1 Assume that you have $20,201 to invest in a term deposit, and there are three options for your choice as follow: (1) A 90-day deposit that has a maturity value of $21,538 (2) A 130-day deposit that has a maturity value of $21,800 (3) A 145-day deposit that has a maturity value of $21,958
Required: a) Calculate the implied investment yield (percentage per annum) you can earn with each option.
b) Which of the three options would you select if the selection strategy is dependent on the higher yield (percentage per annum)?
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