(Solving for

i)

You are considering investing in a security that will pay you

$1,000

in

29

years.a.If the appropriate discount rate is

10

percent,

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

$364

in return for which you receive

$1,000

in

29

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

$364?

Question content area bottom

Part 1

a.If the appropriate discount rate is

10

percent, the present value of this investment is

$63.0563.05.

(Round to the nearest cent.)

Part 2

b.The rate of return investors can earn on this investment if they buy it for

$364

is

enter your response here%.

(Round to two decimal places.)