What is the rate of return investors earn on this investment

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Question - You are considering investing in a security that will pay you $4,000 in 33 years.

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

b. Assume these investments sell for $807 in return for which you receive $4,000 in 33 years. What is the rate of return investors earn on this investment if they buy it for $807?

Reference no: EM133149983

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