What is the discount factor (PVIF) for a cashflow that is due in 3 years, compounds...
What is the discount factor (PVIF) for a cashflow that is due in
3 years, compounds semiannually with a yield of 3.25%?
(go to 4 decimal
places)
Homework Answers
PVIF=1/(1+ discount rate)^Time period
Discount rate=3.25%
Semiannual discount rate =3.25%/2=0.01625
Time period=3 years
The number of periods when the interest is compounded semiannually
is 3*2=6
PVIF=1/(1+0.01625)^6=0.907813524 or 90.7814% (Rounded to 4 decimal places)
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What is the discount factor (PVIF) for a cashflow that is due in
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