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What is the rate of return investors earn on the investment

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Reference no: EM132552064

You are considering investing in a security that will pay you $1000 in 30 years

Question a) if the appropriate discount rate is 10% what is the present value of this investment?

Question b) assume these investment sell for $365 in return for which you receive $1000 in 30 years. what is the rate of return investors earn on this investment if they buy it for 365?

Reference no: EM132552064

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