A mortgage instrument pays 25 million at the end of each of


A mortgage instrument pays $2.5 million at the end of each of the next two years. An investor has an alternative investment with the same amount of risk that will pay interest at 8% compounded monthly. Which of the following amounts is closest to what the investor should pay for the mortgage instrument?

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Financial Management: A mortgage instrument pays 25 million at the end of each of
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