Another investor be willing to pay for your security

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Reference no: EM13728713

Suppose that you are considering the purchase of a security that has the following timeline of payments:

Year Interest face value $10,000

1 600

2 600

3 600

4 600

Suppose that the two years have elapsed since you purchased the security, and you have received the first two payments of $600 each. Now suppose the market interest rate suddenly jumps to 10%. How much would another investor be willing to pay for your security?

Reference no: EM13728713

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