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

question 22

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

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