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The following table shows the stream of income produced by several different assets. In each case, P,, P2, and Ps are the payments made by
The following table shows the stream of income produced by several different assets. In each case, P,, P2, and Ps are the payments made by the asset in Years 1, 2, and 3. For each asset, compute the asset's present value and explain why the market price for each asset will be the asset's present value. (10 marks) P2 P3 SO $7500 Market Interest Rate (i) 3% P1 Asset Treasury Bill Bond $0 $1500 $0 $300 $100 $0 5% $300 $200 $300 7% Bond $150 9% Stock
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