Question

Review the instructions in problem 8. Now assume as alternative A you are considering a $10,000 par value Treasury strip that matures in 20 years. The discount rate is 6 percent. You also are considering alternative B, which represents a $10,000 par value Treasury strip that matures in 16 years. The discount rate is 8 percent. Which has the lower price (present value)?


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  • CreatedSeptember 21, 2015
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