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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