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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?

  1. $92
  2. $93
  3. $94
  4. Something else

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