Question
You are considering investing in a security that will pay you $3,000 in 26 years. a. If the appropriate discount rate is 11 percent, what
You are considering investing in a security that will pay you $3,000 in 26 years.
a. If the appropriate discount rate is 11 percent, what is the present value of this investment?
b. Assume these investments sell for $1,027 in return for which you receive $3,000 in 26 years. What is the rate of return investors earn on this investment if they buy it for
$1,027?
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
