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You are considering investing in a security that will pay you $4,000 in 33 years.a.If...

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Question

Finance

You are considering investing in a security that will pay you

$4,000

in

33

years.a.If the appropriate discount rate is

8

percent,

what is the present value of this investment?b.Assume these investments sell for

$1,042

in return for which you receive

$4,000

in

33

years. What is the rate of return investors earn on this investment if they buy it for

$1,042?

Answer & Explanation Solved by verified expert
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