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The price of a perpetuity paying $1 each year is 10 times as high as the price of a 4-year annuity paying $2 each year.
The price of a perpetuity paying $1 each year is 10 times as high as the price of a 4-year annuity paying $2 each year. Whats the price of a 4-year zero-coupon bond, with par value $100, to the nearest dollar?
- $92
- $93
- $94
- Something else
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