3. (Required) In-class 3 20 20 20 20 0 2 n Question: If the risk-free interest rate is 5%, what is the present value at
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3. (Required) In-class 3 20 20 20 20 0 2 n Question: If the risk-free interest rate is 5%, what is the present value at
Question: If the risk-free interest rate is 5%, what is the present value at time 0 of all these cash flows (risk free). (Required) In-class 4 20 20(1+5%) 20 (1 + 5%)"-3 + 1 2 0 3 4 n R. Question: If the risk-free interest rate is 10%, what is the present value at Time 0 of all the above future cash flows.
3. (Required) In-class 3 20 20 20 20 0 2 n