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1) there is a hypothetical financial instrument 1. There is a hypothetical financial instrument which pays 10% interest for the first 7 years and 5%

1) there is a hypothetical financial instrument
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1. There is a hypothetical financial instrument which pays 10% interest for the first 7 years and 5% permanently after the first 7 years. This instrument pays interest quarterly. You are considering investing $2,000 on this instrument and looking for an annual return of 5% on this investment. What should be the present value of this investment? (10 points)

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