Question: You are able to purchase a mortgage note from a bank for $429,000 that gives you the right to receive $75,500 in each of the

You are able to purchase a mortgage note from a bank for $429,000 that gives you the right to receive $75,500 in each of the next 7 years. What is the yield on this investment?

Mr. Able owns a parcel of land that a local farmer has offered to rent for the next 20 years. The farmer has offered to pay $255,000 today or an annuity of $16,000 at the end of each of the next 20 years. Using a required rate of return of 3%, what option should Mr. Able choose?

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