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3. Assume there is a security that pays you the following cashflows: (Hint this is an annuity starting year 4) 1 0 1 2 3

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3. Assume there is a security that pays you the following cashflows: (Hint this is an annuity starting year 4) 1 0 1 2 3 5 4 800 6 800 800 What is the amount you would be willing to pay for this security today? Assume rate of interest is 10% per year and compounding is annual

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