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P.l.e.a.s.e. SOLVE You need to find the present value of a cash flow of $1,000 that is to be received in 150 days. You decide
P.l.e.a.s.e. SOLVE
You need to find the present value of a cash flow of $1,000 that is to be received in 150 days. You decide to look at a T-bill maturing in 150 days to determine the relevant interest rate for calculating the present value You have found a variety of yields for the 150-day bill. Table 8 presents this information Example 7 Using the appropriate Discount Rate Short-Term Money Market Yields Table 8. Holding period 2.0408% yield Bank discount 4.8% yield Money market 4.898% yield Effective annual 5.0388% yield Which yield or yields are appropriate for finding the present value of the $1,000 to be received in 150 days? Page 42 of 375Step by Step Solution
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