Question: You are considering investing in a security that will pay you $1,000 in 30 years. a. If the appropriate discount rate is 10 percent, what

You are considering investing 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 investment?

b. Assume these investments sell for $365, in return for which you receive $1,000 in 30 years; what is the rate of return investors earn on this investment if they buy it for $365?

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