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Compute the annual interest rate or rate of return that you will earn on the following investments: A U.S. Treasury bill that has a current
Compute the annual interest rate or rate of return that you will earn on the following investments:
- A U.S. Treasury bill that has a current price of $930 and will pay $1,000 at maturity one year from now.
- A U.S. Treasury bill that has a current price of $950 and will pay $1,000 at maturity six months from now.
- A U.S. Treasury note selling at its maturity value ($1,000), paying 9% coupon interest per year, and maturing in 5 years.
- An acre of vacation property with a current price of $5,000 that you expect to be able to sell for $6475 in 3 years.
- A preferred stock with a current price of $90 paying $10.80 dividends per share per year forever.
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