You are confident interest rates are going to rise by 2 percentage points over the next year. You are unsure about what will happen after that. You can buy a 1-year discount bond for 10k with a YTM of 1%. Or a 10-year discount bond for 10k with a YTM of 3%. Or you can buy a 30-year discount bond for 10k with a YTM of 5%. You need your money back in a year. Which do you buy

answer; radioactive decay)

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rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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