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A (yearly) cash flow stream is X=( -80,24,24,24,24,24,24) The spot rates (yearly in percentage) are s =(5.0, 5.3, 5.6, 5.8, 6.0, 6.1) a) Find the
A (yearly) cash flow stream is X=( -80,24,24,24,24,24,24) The spot rates (yearly in percentage) are s =(5.0, 5.3, 5.6, 5.8, 6.0, 6.1)
a) Find the current discount factors dk
b) Use the discount factors to determine the (net) present value of the cash flow stream
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