Question: 3 . You hold a security that will pay you a $ 5 0 0 , 0 0 0 lump sum payment at the end

3.You hold a security that will pay you a $500,000 lump sum payment at the end of an 8-year period. The relevant interest rate or rate of return for the next 8-years is 7.50%, and the compounding period is semi-annually. What is the Present Value of the $500,000 lump sum payment, i.e. how much must you invest today to receive $500,000 in 8 years?

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