Lend on the capital market at an interest rate

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You've just won the state lottery and will receive 20 annual payments of $70,000, with the first payment arriving 1 year from today. It is easy for you to borrow or lend on the capital market at an interest rate of 8% per year. If someone offered to buy your stream of winnings for a one-time payments of $1,000,000 would you sell?

Reference no: EM13735651

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