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Suppose That a Security with a Risk-Free Cash Flow of $1000

Question 77

Multiple Choice

Suppose that a security with a risk-free cash flow of $1000 in one year trades for $930 today.If there are no arbitrage opportunities,then the current risk-free rate is closest to:


A) 6.0%
B) 6.5%
C) 7.0%
D) 7.5%

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