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5. TAA offers a security for sale that pays an annual $200 payment forever, which is paid monthly, and market interest rates are 9% per

5. TAA offers a security for sale that pays an annual $200 payment forever, which is paid monthly, and market interest rates are 9% per year.

a. What is this security worth today?

b. If the annual payment of $200 grows at a rate of 5% every year, what is the security worth?

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