What second year rate would make timmy indifferent

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Reference no: EM132030217

Timmy needs $100,000's next year for his house. The current one year rate one a T-Bill is 9.5% and the two year rate is 10%.

What second year rate would make Timmy indifferent from purchasing a 2 one year T-Bills or one 2 year T-Strip?

Reference no: EM132030217

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