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A (yearly) cash flow stream is x=(-42, 19, 19, 19, 19, 19, 19). The spot rates (yearly in percentage) are s=(5.0, 5.3, 5.6, 5.8, 6.0, 6.1).

(a) Find the current discount factors dk.

(b) Use the discount factors to determine the (net) present value of the stream. (Keep your answer to 2 decimal places)

Financial Management, Finance

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