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Risk-free interest rate

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Reference no: EM131206393

Suppose the risk-free interest rate is 4.6 %

a. Having $200today is equivalent to having what amount in one year?

b. Having $200in one year is equivalent to having what amount today?

c. Which would you prefer,$ 200 today or $ 200 one year? Does your answer depend on when you need the money? Why or why not?

Reference no: EM131206393

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