Two cashflows A and B consist of three payments at t = 0, 1, 2 where t is in years. Cashflow A is C A 0 = .82, CA 1 = −1, CA 2 = 2 while cashflow B is C B 0 = .01, CB 1 = .8, CB 2 = 1. Find the interest rate where the two cashflows are equal (assuming the same interest rate for both cash flows.)
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