If the interest rate is 10%, what is the present value of a security that pays you €1,100 next year, €1,210 the year after and €1,331 the year after that? If the security in problem 3 sold for €3,500,...

If the interest rate is 10%, what is the present value of a security that pays you €1,100 next year, €1,210 the year after and €1,331 the year after that? If the security in problem 3 sold for €3,500, is the yield to maturity greater or less than 10%? Why?



May 26, 2022
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