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You Just won a lottery that promise to pay you 100,000 exactly 10 years from now. Because the 100,000 is guaranteed by the government, opportunities
You Just won a lottery that promise to pay you 100,000 exactly 10 years from now. Because the 100,000 is guaranteed by the government, opportunities exist to sell the claim today for an immediate single cash payment. a- What is the least you will sell your claim for it you can earn the following rates of retum on similar risk investment during the 10-year period? 1- 5% 2.8% 3- 11% b- Rework on part a under the assumption that 100.000 payment will be received in 15 years rather than 10 years. C- Explain why you want or do not want to explain you claim
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