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Jon would like to invest in a $130,000 face value note payable. The note has a 4-year term and pays 3% annual interest, at the

Jon would like to invest in a $130,000 face value note payable. The note has a 4-year term and pays 3% annual interest, at the end of each year. Interest is compounded annually.

What would he pay for the note if he wanted the note to yield 5%?

What would he pay for the note if he wanted the note to yield 18%?

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