Suppose that the interest rate is 4%. What is the value of the discount factor, v? υ Enter a value correct to 6 decimal places What is the rate of discount, d? d = Enter a percentage correct to 2 decimal places A payment of £450 will be made in 5 years. What is the present value of this payment? £ Enter a value correct to 2 decimal places

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
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Suppose that the interest rate is 4%.
What is the value of the discount factor, v?
V
Enter a value correct to 6 decimal places
What is the rate of discount, d?
d
Enter a percentage correct to 2 decimal places
A payment of £450 will be made in 5 years.
What is the present value of this payment?
£
Enter a value correct to 2 decimal places
Transcribed Image Text:Suppose that the interest rate is 4%. What is the value of the discount factor, v? V Enter a value correct to 6 decimal places What is the rate of discount, d? d Enter a percentage correct to 2 decimal places A payment of £450 will be made in 5 years. What is the present value of this payment? £ Enter a value correct to 2 decimal places
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