If the risk-free rate of interest ($ r_f $) is 9%, then you should be indifferent between receiving $500 in one year or:- A. $500.00 today.- B. $550.46 today.- C. $458.72 today.- D. none of the above.

Interest Rate = 9% Time Period = 1 Year Future Value = $500

Answered: If the risk-free rate of interest (r)…

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

Problem 1PS

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If the risk-free rate of interest (r) is 9%, then you should be indifferent between receiving $500 in one year or ...... O A. $500.00 today. B. $550.46 today. C. $458.72 today. D. none of the above