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Question 6.RR: A certain U.S. government savings bond can be purchased for ...

A certain U.S. government savings bond can be purchased  for $7,500. This bond will be worth $10,000 when it matures in 5 years. As an alternative,  a 60-month  certificate  of  deposit  (CD) can  be purchased for $7,500 from a local bank, and the CD yields 6.25% per year. Which is the better investment if your personal MARR is 5% per year?

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Bond : FW = $10,000 with certainty (IRR = 5.922%)
CD : FW = $7,500(F/P, 6.25%, 5) = $7,500(1.3541)  = $10,155.80 (IRR = 6.25%)
The CD is better, assuming comparable risk in both investments

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