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How much is a cash flow of $1,000 to be paid in two years and $2,000 to be paid in four years worth today if
How much is a cash flow of $1,000 to be paid in two years and $2,000 to be paid in four years worth today if interest rate is 6%? (4 marks) b. What is the nominal interest rate of a $1,000 pure discount loan that the borrower is required to pay back $1,200 in six months? (4 marks)
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