Assuming no transaction costs

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Reference no: EM131300326

You have the opportunity to buy the right to be paid $600 every 6 months for the next 3 years with an interest rate of 3.6 percent compounded semiannually. At what price do neither you nor the seller make any money on this deal, assuming no transaction (other) costs?

What amount today would the equal the value of receiving $37 each month for 1/3 of a year with a 7.8% compounded semi-monthly?

Reference no: EM131300326

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