Question
7. A small firm has a pension liability of $500,000 which is due in 15 years. What is current value of the liability if the
7. A small firm has a pension liability of $500,000 which is due in 15 years. What is current value of the liability if the interest rate (discount rate) is 11%.
8. An investor would like to invest $5,000 today and expects to get back triple that amount in 7 years. At what rate should he/she need to invest in order to achieve the goal?
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The Handbook Of Traditional And Alternative Investment Vehicles Investment Characteristics And Strategies
Authors: Mark J. P. Anson, Frank J. Fabozzi, Frank J. Jones
1st Edition
0470609737, 978-0470609736
