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You are considering investing in a security that will pay you $ 5 , 0 0 0 in 3 5 years. a . If the

You are considering investing in a security that will pay you $5,000 in 35 years.
a.If the appropriate discount rate is 12 percent, what is the present value of this investment?
b.Assume these investments sell for $801 in return for which you receive $5,000 in 35 years. What is the rate of return investors earn on this investment if they buy it for $801?

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