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02-11-2022
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3. suppose that a risk-free investment will make three future payments of $100 in 1 year, $100 in 2 years, and $100 in 3 years. if the federal reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment? what is the price of this investment if the federal reserve raises the risk-free interest rate to 10 percent?

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