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Kobotan [32]
3 years ago
6

If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving $250 today or:

Business
1 answer:
kodGreya [7K]3 years ago
8 0

Answer:

the indifference between receiving $250 today or is $235.85

Explanation:

The computation of the indifference between receiving $250 today or is shown below:

Here we determine the present value

= Amount ÷ (1 + risk free rate of interest)

= $250 ÷ (1 + 0.06)

= $250 ÷ 1.06

= $235.85

Hence, the indifference between receiving $250 today or is $235.85

The same is relevant and considered too

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Answer:

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Discount on bonds payable A/c Dr. $59,216

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Workings:

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