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To celebrate your nephew's first birthday, you are considering buying him a bond or depositing money in a savings account. If you ignore tax and other fee implications, which of the following options is the MOST generous gift in terms of the future value of the asset?

Buy a $100 bond at par value with 5% compounded semi-annually that will mature in 30 years.

Put $100 in a checking account earning 5% interest compounded annually.

Put $100 in a checking account earning 5% interest compounded semiannually.

Buy a $200 savings bond at half par value that will mature in 30 years.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92082906

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