1. A security is currently selling for $8,000 and promises to pay $1,000 annually for the next 9 years, and $1,500 annually in the 3 years thereafter with all payments occurring at the end of each year. If your required rate of return is 7% p.a., should you buy this security? a. No, because the return is less than 7%.
   2. Yes, because the return is greater than 7%.
   3. Yes, because the return is 7%.
   4. Yes, because the present value at 7% is less than $8,000.
   5. There is insufficient information provided to answer this question.