I need to check my calculations...I haven't been using my financial calculator in a while....stupid considering I am supposed to be taking my CFA in 6 weeks.
I am sure they are using risk free rates because the governemnet wouldn't calculate investment risk into lottery winnings. They would assume the person can return x based on the Treasury....and seeing how the yield curve is very flat, I wouldn't doubt that they are using no more than 4% for the DR.
And shit, $110MM???? the winner can invest that, live wealthy off of the interest and never touch the principle. Generations can be set for life.
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