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discount factors are as follows d0.5 = 0.0476.; d1 = 0.1008; d1.5 = 0.1133. 3 Question 3 The time today is to 0 in this

discount factors are as follows

d0.5 = 0.0476.; d1 = 0.1008; d1.5 = 0.1133.

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3 Question 3 The time today is to 0 in this question. .Suppose we have three cashflows CFo. , cFi and CF1.5 at (future) times t0.5, t1 and t1.5, respectively. Let the discount factors of the three cash flows be dos, di and d1.5, respectively. Let the present value of the total set of the three cashflows be CFo (i.e. the value today Write a mathematical formula for CFo in terms of the input parameters: CFo-function of {CF0.5, CA, CFis), etc. . Let the times be to.5-05, h = 1.0 and t1.5-1.5. . Let the values of the cashflows be CF0.5 = 2.0, CFi 2.0 and CF1.5 = 102.0. The discount factors do.s, di and d1.5 are given by the values you calculated in Calculate the numerical value of C Fo in eq. (3.1) (answer to FOUR decimal places). CFO (number) Question 2 (to 4 d.p.). (3.2)

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