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You Are to Receive a Cash-Flow of $40 After Three

Question 20

Multiple Choice

You are to receive a cash-flow of $40 after three years. If the ytm of this cash-flow is 6%, what is its present value? (Assume a semi-annual basis for compounding and discounting.)


A) $28.20
B) $33.50
C) $33.58
D) $37.74

Correct Answer:

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