Explain how you would value a derivative that pays off 100 in 5 years, where R is

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Explain how you would value a derivative that pays off 100 in 5 years, where R is the 1-year interest rate (annually compounded) observed in 4 years. What difference would it make if the payoff were in 4 years? What difference would it make if the payoff were in years 5

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