Question
Someone offers to sell to you a financial contract that will pay $150 at the end of each of the next five years, plus an
Someone offers to sell to you a financial contract that will pay $150 at the end of each of the next five years, plus an additional $500 at the end of the fifth year. If they will sell the contract for $950, what rate of return are they offering on the investment?
| 7.7% | ||
| 9.6% | ||
| 10.7% | ||
| 31.6% | ||
| insufficient information to estimate a return rate |
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Handbook Of High Frequency Trading
Authors: Greg N. Gregoriou
1st Edition
0128022051, 978-0128022054
