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Suppose you observe a security in the market-place selling for $10,515.50. The security offers continuous compounding and promises to provide a one-time lump sum cashflow
Suppose you observe a security in the market-place selling for $10,515.50. The security offers continuous compounding and promises to provide a one-time lump sum cashflow of $15,000 exactly 8 years from today. What is the continuously compounded rate of interest?
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