What is the rate of return investors earn on investment

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Question - Mike is considering investing in a security that will pay you $1000 in 31 years.

a. If the appropriate discount rate is percent 9, what is the present value of this investment?

b. Assume these investments sell for $270 in return for which you receive $1,000 in 31 years. What is the rate of return investors earn on this investment if they buy it for $270?

Reference no: EM133179070

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