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Jenna's boss has decided to pay her a one-time bonus of $5,000. She decides to save the money until she retires, 4 years from now. She contemplates...

Jenna’s boss has decided to pay her a one-time bonus of $5,000. She decides to
save the money until she retires, 4 years from now. She contemplates two savings
options. Option A is to save the money for four years outside of an RRSP in a
foreign corporate bond that will pay her 10 percent per year. Option B is to save
for four years in an RRSP account with a domestic government bond that will pay
her 8 percent per year. The marginal income tax rate that Jenna faces while she is
working is 30 percent. When she retires her marginal tax rate will drop to 25
percent, as she will be in a lower tax bracket. As her financial advisor, which
option do you recommend? (Answer this by calculating the net amount of her
bonus upon cashing in the investment at her retirement.)
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