What is the rate of return investors earn on this investment

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Reference no: EM133097449

Question - You are considering investing in a security that will pay you $1,000 in 30 years.

a. If the appropriate discount rate is 11 percent, what is the present value of this investment?

b. Assume these investments sell for $446 in return for which you receive $1,000 in 30 years. What is the rate of return investors earn on this investment if they buy it for $446?

Reference no: EM133097449

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