What is the rate of return investors earn on this investment

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Reference no: EM132946988

Problem - You are considering investing in a security that will pay you $1,000 in 29 years.

a. If the appropriate discount rate is 12 percent, what is the present value of this investment?

b. Assume these investments sell for $317 in return for which you receive $1,000 in 29 years. What is the rate of return investors earn on this investment if they buy it for $317?

Reference no: EM132946988

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