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Showing posts with label
discount rate
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Showing posts with label
discount rate
.
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Wednesday, July 7, 2021
If your opportunity cost is 12%, how much will you pay for a bond that pays $100 per year forever?
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If your opportunity cost is 12%, how much will you pay for a bond that pays $100 per year forever? Answer: PV = $100/.12 = $833.33 What is ...
Tuesday, July 6, 2021
What is the present value of an annuity of $100 received at the end of each year for seven years?
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What is the present value of an annuity of $100 received at the end of each year for seven years? The first payment will be received one yea...
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