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At a continuously compounded nominal interest rate of ln(R), the present value of following cash flows C1=(1,0,1,0,1)C2=(1,0,2,0,3) are P1 and P2 respectively. Express the present
At a continuously compounded nominal interest rate of ln(R), the present value of following cash flows C1=(1,0,1,0,1)C2=(1,0,2,0,3) are P1 and P2 respectively. Express the present value of each of the following cash flows in terms of P1,P2 and R. All your answers should be exact and as simplified as possible. (a) C3=(0,0,1,0,1,0,1,0,0,1,0,2,0,3). (b) C4=(0,1,1,2,1,3,1). (c) C5=(11,0,12,0,13,0,11,0,12,0,13,0,11,0,12,0,13,0,)
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