If the federal reserve has set the risk-free interest rate, Econometrics

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If the federal reserve has set the risk-free interest rate

Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three 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 if the Federal Reserve raises the riskfree interest rate to 10 percent?

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Econometrics: If the federal reserve has set the risk-free interest rate

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