Module5HWSol - 1 = $306.25 A 8.5 = $306.25 A 9 = $10,000 +...

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Module 5 Chapter 2 D21 Annual inflation rate is 1.0105 4 1 = 4.267% D22 D23 From Table 2.3, C$1 will get you . D25 Annual inflation free rate: D26 Annual market interest rate:
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A8 The cash flow stream in current dollars is defined by the actual dollars received: A 0 = -$10,000 A 0.5 = $306.25 A
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Unformatted text preview: 1 = $306.25 A 8.5 = $306.25 A 9 = $10,000 + 306.25 Assuming a 2.3% semiannual rate of inflation, the real dollars are: A = -$10,000 A 0.5 = $306.25 / 1.023 = $299.36 A 1 = $306.25 / 1.023 2 = $292.63 A 8.5 = $306.25 / 1.023 17 = $208.06 A 9 = ($10,000 + 306.25) / 1.023 18 = $6,844.46...
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Module5HWSol - 1 = $306.25 A 8.5 = $306.25 A 9 = $10,000 +...

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