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1. (i) What will $1000 be worth in 8 years if the nominal interest rate is 15% and [3] [3] (a) Interest is compounded
1. (i) What will $1000 be worth in 8 years if the nominal interest rate is 15% and [3] [3] (a) Interest is compounded every 4 months? (b) Interest is compounded every 4 years? (ii) A perpetuity with a Cash Flow of $50 has a Present Value of $800 under continuously compounded interest. Determine the continuously compounded rate of return? [4]
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a When the interest is compounded every 4 months we need to calculate the future value using the for...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
