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Bill enters an agreement that requires him to pay $ 5 0 , 0 0 0 today in exchange for 2 5 , 0 0
Bill enters an agreement that requires him to pay $ today in exchange for in three years and $ in years.
a Compute Bills net present value if the annual effective rate of interest is
b Compute Bills annual effective yield rate.
c What is Bills annual effective yield rate if he receives an additional $ after years?
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