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Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three years.

Instructions: Round your answers to two decimal places.

If the Federal reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M953409

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