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Some of the inputs to this problem will change with each submission, so you will need to recompute your answer each time you resubmit. An

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Some of the inputs to this problem will change with each submission, so you will need to recompute your answer each time you resubmit. An investor is considering the purchase of a medium-quality, two-year, zero coupon corporate bond. She uses time value equations Opportunity Investment Model to analyze potential purchases. She measures projectspecific-risk in future cash flows, and she believes that the project-riskadjusted CF2 for a prospective bond is 96 . The promised CF2 for this bond is \$100. The annualized risk-free rate (rrf) for two-year bonds is 2%. If she thinks she should pay just 79 for the bond today, what annual discount rate (r) did she use to get this value? Round your answer to three decimal places and do not represent your answer as a percent. IE: write 0.067 not 6.7%

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