{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Module5HWSol

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

This preview shows pages 1–2. Sign up to view the full content.

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:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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 1 =
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}