Find what is the proper current price of the investment

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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.

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

What is the price of this investment if the Federal Reserve raises the risk-free interest rate to 10 percent?

Reference no: EM13239978

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