If the risk-free rate of interest (r_f)is 6%,then you should be indifferent between receiving $250 in one year or A) $235.85 today. B) $250.00 today. C) $265.00 today. D) none of the above

Name: If the risk-free rate of interest (r f )is 6%,then you should be indifferent between receiving $250 in one year or A) $235.85 today. B) $250.00 today. C) $265.00 today. D) none of the above
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Question

Quizplus · Accepted Answer

A) Benefit = $250.00 / ($1.06 in one year / $1.00 today) = $235.85

If the Risk-Free Rate of Interest (Rf)is 6%,then You Should

If the Risk-Free Rate of Interest (R_f)is 6%,then You Should