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Q10 [4 pts] Payments of $1000 at time 0 and $535 at time 2 are equivalent to a single payment of Y at time 1

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Q10 [4 pts] Payments of $1000 at time 0 and $535 at time 2 are equivalent to a single payment of Y at time 1 . a) Find Y if the equivalence is based on an annual effective rate of 7%. b) The rate of interest for this equivalence is i=7%. Is this rate unique or is there another rate of interest for which these payments are equivalent? Explain your

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