Term in years:Rate:2OA $74.862OB $02.385OC. $57,339OD $40.0001035%30437553.125%The table above shows the interest rates available from investing in msk free US Treasury securbes with different investment ferms. If an investment offers a risk-free cash flow of $85,000 in ten years' time, whatis the present value (PV) of that cash flow?

Present value illustrates the current value of a sum of money that will be received or paid in the…

The table above shows the interest rates available from investing in mk free US Treasury securbes with different investment ferms If an investment offers a risk tree cash flow of $85.000 in ten years' time, who is the present value (PV) of that cash flow? OA $74,862 OB $62.385 Oc. 557,339 OD $40.908

The table above shows the interest rates available from investing in mk free US Treasury securbes with different investment ferms If an investment offers a risk tree cash flow of $85.000 in ten years' time, who is the present value (PV) of that cash flow? OA $74,862 OB $62.385 Oc. 557,339 OD $40.908

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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B. J. Gautney Enterprises is evaluating a security. One - year Treasury bills are currently paying 3.0 percent. Calculate the investment's expected return and itsstandard deviation. Should Gautney invest in this security?Probability,ReturnProbability,Return0.20,-6%0.40, 1%0.20, 7%0.20, 8%
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