You are considering investing in a security that will pay you $2,000 in 28 years. a) If

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You are considering investing in a security that will pay you $2,000 in 28 years.

a) If the appropriate discount rate is 11%, what is the present value of this investment?

b) Assume these investments sell for $531 in return which you receive $2,000 in 28 years. What is the rate of return investors earn on this investment if they buy it for $531

Related Book For answer-question

Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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Posted Date: Mar 06, 2019 09:00 AM

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You are considering investing in a security that will pay you $2,000 in 28 years. a) If

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a The present value 200... View the full answer

Financial Management Principles and Applications

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