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Hello,
For the fubuki question, why do we use the annuity factor 3.588 for the rate of 4.5%?
I thought it should be for the interest rate of 7.5%.
Can you please explain, sir?
Thanks4.5% is the debt yield rate. However as the examiner does state in his answer, using 7.5% instead would get full marks 🙂
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