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1) A risk-free bond will pay you $1000 in 1 year. The annual discount rate is i=2.35% compounded annually. What is the bonds present value?
1) A risk-free bond will pay you $1000 in 1 year. The annual discount rate is i=2.35% compounded annually. What is the bonds present value?
2) A risk-free bond will pay you $1000 in 2 years and nothing in between. The annual discount rate is i=3.25% compounded annually. What is the bonds present value?
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