Suppose the risk-free interest rate is 46 a having 200


Suppose therisk-free interest rate is 4.6 %

a. Having $200 today is equivalent to having what amount in one year?

b. Having $200 in one year is equivalent to having what amount today?

c. Which would you prefer,$ 200 today or $ 200 one year? Does your answer depend on when you need the money? Why or why not?

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Finance Basics: Suppose the risk-free interest rate is 46 a having 200
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