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never [62]
3 years ago
14

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

ars. If the Federal Reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment?
Business
1 answer:
olya-2409 [2.1K]3 years ago
7 0

Answer:

The answer is $ 257.70

Explanation:

PV= Σ  of  discounted payments

PV = 100(1.08^-1) + 100(1.08^-2) + 100(1.08^-2)= <u>$ 257.70</u>

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Answer:

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3 years ago
Susie Smith signed a note agreeing to pay "Annie Greene, Mary Hodge" $1,000. The payment was for painting her house. An issue wi
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Answer:

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The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Budgeted production 3,400
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Answer:

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