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Suppose that a risk-free investment will make three future payments of $250 in one year, $250 in two years, and $250 in three years. If

Suppose that a risk-free investment will make three future payments of $250 in one year, $250 in two years, and $250 in three years. If the Federal Reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment? $. b. What is the price of this investment if the Federal Reserve raises the risk-free interest rate to 10 percent? $.

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