Essay
Certificate A pays $1,000 in 4 months and another $1,000 in 8 months. Certificate B pays $1,000 in 5 months and another $1,000 in 9 months. If the current rate of return required on this type of investment certificate is 5.75%, determine the current value of each of the certificates. Give an explanation for the lower value of
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A = $1,944.28 and B = $1,935.2...View Answer
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