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2 . Calculate the value of a security that will pay 1 0 / year in perpetuity if investors require an 8 % return. 3

2. Calculate the value of a security that will pay 10/year in perpetuity if investors require an 8% return.
3. Calculate the value of a bond that has an annual coupon rate of 9% and a maturity value of 1,000.
Assume the bond matures in five years and that bondholders require an 11% return.

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