A dean at NYU has a guaranteed salary of $120, 000 at the end of each year for the next five years at which point they are scheduled to retire. The school would like the dean to retire now. How much should the school offer today? Suppose current interest rates are 1.5% at all maturities.
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A dean at NYU has a guaranteed salary of $120, 000 at the end of each year for the next five years a...
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