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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.

  1. 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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