A debt of 8400 is due at the end of 5 years. it is proposed that $X

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A debt of 8400 is due at the end of 5 years. it is proposed that $X be paid now with another $X be paid in 20 years time to liquidate the debt

calculate the value of x if the effective interest rate is J12=9% for the first 6years and J2=5% for the next 4years

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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Posted Date: Mar 29, 2023 05:01 AM

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A debt of 8400 is due at the end of 5 years. it is proposed that $X

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To find the value of X we need to calculate the present value of the two payments that will be made ... View the full answer

Financial Markets and Institutions

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