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An asset was issued 11 months ago. The asset promised to make semi-annual payments (one payment every six months) of $80 each, from the date of issuance, for two years. All payments are equally risky an thus they have the same discount rate. You've decided that the discount rate is 12%. According to these numbers, how much is the asset worth to you today? Round your answer to the NEAREST DOLLAR.

An asset was issued 11 months ago. The asset promised to make semi-annual payments (one payment every six months) of $80 each, from the date of issuance, for two years. All payments are equally risky an thus they have the same discount rate. You've decided that the discount rate is 12%. According to these numbers, how much is the asset worth to you today? Round your answer to the NEAREST DOLLAR.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An asset was issued 11 months ago. The asset promised to make semi-annual payments (one payment every six months) of $80 each, from the date of issuance, for two years. All payments are equally risky and thus they have the same discount rate. You've decided that the discount rate is 12%. According to these numbers, how much is the asset worth to you today? Round your answer to the NEAREST DOLLAR.
Transcribed Image Text:An asset was issued 11 months ago. The asset promised to make semi-annual payments (one payment every six months) of $80 each, from the date of issuance, for two years. All payments are equally risky and thus they have the same discount rate. You've decided that the discount rate is 12%. According to these numbers, how much is the asset worth to you today? Round your answer to the NEAREST DOLLAR.
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