In the second year the interest rate is compounded, Financial Management

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In the second year the interest rate is compounded

A financial instrument pays $100,000 at the end of each of the next two years. The APR is 8%. In the first year the interest rate is compounded annually. In the second year the interest rate is compounded semi-annually. What is the present value of the financial instrument?

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Financial Management: In the second year the interest rate is compounded

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Financial Management: In the second year the interest rate is compounded

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