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We have seen computation of present value using single discount rate. But the right way to value a cash flow of a bond is to use multiple discount rates, i.e valuing the cash flows of a bond by using different discount rates that are unique to the time period in which a cash flow will be received.
Ask I have included a simple capital investment problem which is in Course Documents. We are going to use the same numbers for several classes and look at some of the ways that cap
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traditional theory in assignment
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