Question: 5-y. (solving for ) (Related to Checkpoint 5.6 on page 176) You are considering invest- ing in a security that will pay you $1,000 in
5-y. (solving for ) (Related to Checkpoint 5.6 on page 176) You are considering invest- ing in a security that will pay you $1,000 in 30 years. a. If the appropriate discount rate is 10 percent, what is the present value of this b. Assume these securities sell for $365, in return for which you receive $1,000 in 30 years. What is the rate of return investors earn on this security if they buy it for $365? investment
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