Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

What ls the present value (PV) of an Investment that will pay $2,500 In five years if the opportunity cost rate Is 9 percent compounded (a) annually, (b) quarterly, and (c) monthly? Explain why the PV is lowest when Interest is compounded monthly.

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