Question
Assume you can get $1000 in Year 1, $1000 in Year 2, $1000 in year 3, $1000 in year 4 with 100% probability. Risk-free interest
Assume you can get $1000 in Year 1, $1000 in Year 2, $1000 in year 3, $1000 in year 4 with 100% probability. Risk-free interest rate is 10%. What is the present value of these future cash flows?
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Finance And Economics Discussion Series Should Risky Firms Offer Risk Free DB Pensions
Authors: United States Federal Reserve Board, David A. Love
1st Edition
128870500X, 9781288705009
