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16.) Suppose a risk-free bond that pays $1000 in one year is currently trading witha competitive market price of $929.80 today. The bond's price must

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16.) Suppose a risk-free bond that pays $1000 in one year is currently trading witha competitive market price of $929.80 today. The bond's price must equal the present value of the $1000 cash flow it will pay. The risk-free interest rate must be what percent? 17.) Suppose you have a choice between receiving $5,000 today or $10,000 in five years. You believe you can earn 10% on the $5,000 today, but what will the $5,000 be worth in five years

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