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1) A risk-free bond will pay you $1,000 in 1 year. The annual discount rate is i=15.5% compounded annually. What is the bond's present value?

1) A risk-free bond will pay you $1,000 in 1 year. The annual discount rate is i=15.5% compounded annually. What is the bond's present value?

2) A risk-free bond will pay you $1,000 in 2 years and nothing in between. The annual discount rate is i=27.5% compounded annually. What is the bond's present value?

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