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The promised cash flows of three securities are listed below. If the cash flows are risk-free, and the risk-free interest rate is 5.0%, determine the
The promised cash flows of three securities are listed below. If the cash flows are risk-free, and the risk-free interest rate is 5.0%, determine the no-arbitrage price of each security before the first cash flow is paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Security Cash Flow Today ($) 500 0 1,000 Cash Flow in One Year ($) 500 1,000 The no-arbitrage price of security A is $ - (Round to the nearest cent.) The no-arbitrage price of security B is $ (Round to the nearest cent.) The no-arbitrage price of security Cis (Round to the nearest cent.)
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