You expect the following interest rates and cash flows: Year Spot rate Cash flow 0 1 2 n/a 1.9%…

You expect the following interest rates and cash flows: Year Spot rate Cash flow 0 1 2 n/a 1.9%…

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You expect the following interest rates and cash flows: Year Spot rate Cash flow 0 1 2 n/a 1.9%…
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You expect the following interest rates and cash flows:
Year
Spot rate
Cash flow
0
1 2
n/a
1.9%
-1,000 400
3
2.8% 3.6%
500 300 What is the present value of the cash flows?

Expert Answer:

Answer rating: 100% (QA)

Calculate the present value step by step Year 0 PV0 Cash flow 0 1 000 no discounting required
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