What is the risk-free monthly lease rate for a 5-year lease


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Suppose an H1200 supercomputer has a cost of $500,000 and will have a residual market value of $100,000 in 5 years. The risk-free interest rate is 6.1% APR with monthly compounding.

a) What is the risk-free monthly lease rate for a 5-year lease in a perfect market?

b) What would be the monthly payment for a 5-year $500,000 risk-free loan to purchase the H1200?) - Solved.

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Financial Management: What is the risk-free monthly lease rate for a 5-year lease
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