Bjorn defaulted on payments of $2000 due 3 years ago and $1000 due 1 years ago What would a fair settlement to the payee be 1 years from now, if the money 2 could have been invested in low risk government bonds to earn 4 2 compounded semiannually ...

Calculate equivalent values at a focal date 15 years ...

Bjorn defaulted on payments of $2000 due 3 years ago and $1000 due 1 years ago.

Question:

Bjorn defaulted on payments of $2000 due 3 years ago and $1000 due 1 ½ years ago. What would a fair settlement to the payee be 1 ½ years from now, if the money 2 could have been invested in low-risk government bonds to earn 4.2% compounded semiannually?