Question
Derek's parents gave him a savings bond that will pay him $10,000 in 8 years. Toney offered to buy the savings bond for $6,425 and
Derek's parents gave him a savings bond that will pay him $10,000 in 8 years. Toney offered to buy the savings bond for $6,425 and Derek refused. Based on his choice to NOT sell the bond to Tony, what is Derek's required return?
The answer is 5% but why is that?
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Options Trading For Beginners
Authors: Mike Hartley
1st Edition
979-8864514832
