The following table shows the streams of income produced by several different assets. In each case, P,, P2, and P3 are the payments made by the asset in Years 1, 2, and 3, respectively. Market Interest Rate (i) P, $10,800 so $4,000 $4,000 $4,000 $4.000 $3.200 $4.800 Asset P2 Treasury Bill Bond A 8% 9% $0 $12,000 Bond B 9% Stock 10% a. Calculate the present values of the assets using the information above. Note that the market interest rate is different for each asset. (Round your responses to the nearest cent.) Asset Present Value Treasury Bill Bond A Bond B Stock

Microeconomics A Contemporary Intro
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Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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The following table shows the streams of income produced by several different assets. In each case, P1, P, and Pa are the payments made by the asset in Years 1, 2, and 3, respectively.
Asset
Market Interest Rate (i)
P3
$0
$12,000
$4,000 $4,000 $4,000
$4,000 $3,200 $4,800
P1
P2
Treasury Bill
8%
$10,800
$0
$0
Bond A
9%
$0
Bond B
9%
Stock
10%
a. Calculate the present values of the assets using the information above. Note that the market interest rate is different for each asset. (Round your responses to the nearest cent.)
Asset
Present Value
Treasury Bill
Bond A
Bond B
Stock
$
Transcribed Image Text:The following table shows the streams of income produced by several different assets. In each case, P1, P, and Pa are the payments made by the asset in Years 1, 2, and 3, respectively. Asset Market Interest Rate (i) P3 $0 $12,000 $4,000 $4,000 $4,000 $4,000 $3,200 $4,800 P1 P2 Treasury Bill 8% $10,800 $0 $0 Bond A 9% $0 Bond B 9% Stock 10% a. Calculate the present values of the assets using the information above. Note that the market interest rate is different for each asset. (Round your responses to the nearest cent.) Asset Present Value Treasury Bill Bond A Bond B Stock $
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