An investment promises two payments of $1000, on dates 60 and 90 days from today. What price will an investor pay today:
a) If her required return is 10%?
b) If her required return is 11%?
c) Give an explanation for the lower price at the higher required return.

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The Answer of An investment promises two payments of $1000, on dates 60 and 90 days from today. What price will an investor pay today:
a) If her required return is 10%?
b) If her required return is 11%?
c) Give an explanation for the lower price at the higher required return.

An Investment Promises Two Payments of $1000, on Dates 60