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You lent money to a friend. He has proposed 3 different repayment plans to repay you in 4 years. Which of the following repayment

You lent money to a friend. He has proposed 3 different repayment plans to repay you in 4 years. Which of the

You lent money to a friend. He has proposed 3 different repayment plans to repay you in 4 years. Which of the following repayment plans should you prefer? Select one: a. Yr1 Rs500, Yr2 Rs400, Yr3 Rs300, Yr4 Rs200 b. Yr1 Rs350, Yr2 R$350, Yr3 Rs350, Yr4 Rs350 c. Any of the above since they all add to Rs1400 d. Yr1 Rs200, Yr2 Rs300, Yr3 R$400, Yr4 Rs500

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SOLUTION Using Yahoo Finance the yield or interest rate for the 10year Treasury bond on August 1 2006 was 499 This will be used as the discount rate for the remainder of the problem The timeline for N... blur-text-image

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