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Assuming annual compounding, what is the 2-year spot rate (0r2 ) on an investment that returns $50,000 in year 2 and costs $45,000 today? A.
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Assuming annual compounding, what is the 2-year spot rate (0r2 ) on an investment that returns $50,000 in year 2 and costs $45,000 today?
A. 11.11%
B. 10.00%
C. 5.41%
D. 6.28%
E. 7.32%
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