You have been shortlisted for an analyst job in your favorite Investment bank. Everything seems to be going well. You are hitting all your points when one of the interviewers come up with this question: Here is a game I've just invented: you get to flip a fair coin now. If it lands heads up, you get seventy dollars 18 months from now. If it lands tails, you lose twenty dollars immediately. The one-year interest rate is 12% per annum. The two-year interest rate is 18% per annum. REQUIRED 1. Explain how this game relates to the financial concepts 2. How much would you be prepared to pay to play this game?