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Joan Purchases a Government Bond for $10,000 That Pays 7

Question 29

Multiple Choice

Joan purchases a government bond for $10,000 that pays 7% annual interest. Jim purchases $20,000 worth of corporate bonds that pay 10% annual interest. If Joan's goal is to earn $700 per year on her investment, and Jim's goal is to earn $2,000 per year on his investment, then


A) both Jim and Joan are effective.
B) Jim is more efficient than Joan.
C) Joan is more efficient than Jim.
D) both A and B above are correct.
E) both A and C above are correct.

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