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Determine the set of all interest rates

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Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $6 at t=2, and $10 at t=3.

Suppose the interest rate r is constant.

  1. Determine the set of all interest rates {r} such that the present value of asset A is greater than the present value of asset B.

Reference no: EM132999154

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