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(Related to Checkpoint 5.6) (Solving for i ) You are considering investing in a security that will pay you $1,000 in 34 years. a. If
(Related to Checkpoint 5.6) (Solving for i ) You are considering investing in a security that will pay you $1,000 in 34 years. a. If the appropriate discount rate is 8 percent, what is the present value of this investment? b. Assume these investments sell for $151 in return for which you receive $1,000 in 34 years. What is the rate of return investors earn on this investment if they buy it for $151
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