r0, 5 = 1.03355 1 17.91%. Therefore, 1 + r3, 5 = 1.03355/1.02853 1

Question:

r0, 5

= 1.03355 − 1 ≈ 17.91%. Therefore, 1 + r3, 5

= 1.03355/1.02853 − 1 ≈ 8.38%, which is

√

1.0838 −

1 ≈ 4.10% in annualized terms.

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 25, 2024 08:01 AM

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r0, 5 = 1.03355 1 17.91%. Therefore, 1 + r3, 5 = 1.03355/1.02853 1 8.38%, which is 1.0838 1 4.10% in annualized terms.
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r0, 5 = 1.03355 1 17.91%. Therefore, 1 + r3, 5 = 1.03355/1.02853 1

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Corporate Finance An Introduction

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