Question
You're investing $1 million in a 1-year instrument today at a rate of 2.25%.What must be the reinvestment rate at maturity when you roll over
You're investing $1 million in a 1-year instrument today at a rate of 2.25%.What must be the reinvestment rate at maturity when you roll over your investment into another 1-year instrument in order to achieve proceeds of $1,050,000?
a)2.75%
b)2.69%
c)2.5%
d)2.25%
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Get StartedRecommended Textbook for
Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
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