NPV (Constant cash flows; 3 years)
16. The following pattern for one-year Treasury bills is expected over the next four. years: Year 1 -5%. Year 2 -7%. Year 3-10%. Year 4-11%. a. What return would be necessary to induce an investor to buy a two-year security? b. What return would be necessary to induce an investor to buy a three-year security? c. ................
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