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1. If the interest rate is 9%, the 1-year discount factor is equal to ________.

2. If the interest rate is 9%, the 10-year discount factor is equal to ________.

3. If the 1-year discount factor is 0.9434, the interest rate must be equal to ________.

4. If the 5-year discount factor is 0.9434, the interest rate must be equal to ________.

5. What is the present value (PV) of $100000 received 6 years from now, assuming the interest rate is 8% per year? ____

Financial Management, Finance

  • Category:- Financial Management
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