You are considering investing in a security that will pay you $4000 in 34 years....
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Accounting
You are considering investing in a security that will pay you $4000 in 34 years.
a.If the appropriate discount rate is 10 percent, what is the present value of this investment?
b.Assume these investments sell for $1275 in return for which you receive $4000 in 34 years. What is the rate of return investors earn on this investment if they buy it for $1275?
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