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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.
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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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
