Question
10. A security generates a fixed yet unknown cash flow of some amount for each of the first three years (i.e. t-1, t-2, and
10. A security generates a fixed yet unknown cash flow of some amount for each of the first three years (i.e. t-1, t-2, and t-3), and then $1,000 per year for each of the remaining seven years (t-4 through t=10). The present value of the cash flows at an interest rate of 8% is $10,504.80. What annual cash flow does the security pay for years 1, 2, and 3?
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Computer Networks
Authors: Andrew S. Tanenbaum, David J. Wetherall
5th edition
132126958, 978-0132126953
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