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The following questions relate to financial security S , which operates as follows: A price P is paid ( by the investor ) in return

The following questions relate to financial security S, which operates as follows: A price
P is paid (by the investor) in return for a series of interest payments of D payable at the
end of each of the next n years, and a final redemption payment of R payable at the end
of the n years. The investor earns an annual effective rate of return of i.
(a) Calculate P, given that D =5, R =125, i =10% and n =20.
(b) Calculate n, given that P =83.73, D =4, R =101 and i =6%.
(c) Calculate i, given that P =75, D =5, R =120 and n =10.

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