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You are considering investing in a security that will pay you $1,000 in 30 years. a.If the appropriate discount rate is 10 percent, what is

You are considering investing in a security that will pay you

$1,000

in

30

years.

a.If the appropriate discount rate is

10

percent,

what is the present value of this investment?

b.Assume these investments sell for

$365

in return for which you receive

$1,000

in

30

years. What is the rate of return investors earn on this investment if they buy it for

$365?

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