2. The following three instruments have the same present value as of time 0 :...
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2. The following three instruments have the same present value as of time 0 : - A 4-year annuity immediate that pays 100 at the end of each month. The nominal interest rate is 8.4% compounded quarterly. - A 10-year annuity immediate that pays X at the end of each year. The nominal interest rate is 8.4% compounded semi-annually. - A perpetuity that pays X (same value of X ) at the end of every third year (i.e. at times 3,6,9,12). The annual effective rate is j%
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2. The following three instruments have the same present value as of time 0 : - A 4-year annuity immediate that pays 100 at the end of each month. The nominal interest rate is 8.4% compounded quarterly. - A 10-year annuity immediate that pays X at the end of each year. The nominal interest rate is 8.4% compounded semi-annually. - A perpetuity that pays X (same value of X ) at the end of every third year (i.e. at times 3,6,9,12). The annual effective rate is j% 