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What is the current value of Investment A and B

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Reference no: EM132967931

Problem - You are contemplating two different investments that pay $36,000 at maturity in twenty years. Investment A makes no payments for the first six years, then pays $960 every six months over the subsequent eight years, and finally pays $1,200 every six months over the last six years. Investment B makes no payments over its life other than its maturity value. If the required return on each of these investments is 7.2 percent compounded semiannually, what is the current value of Investment A and of Investment B?

Reference no: EM132967931

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