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You are considering investing in a security that will pay you $2,000 in 29 years. a.If the appropriate discount rate is 12 percent, what is

You are considering investing in a security that will pay you $2,000 in 29 years.

a.If the appropriate discount rate is 12 percent,

what is the present value of this investment?

b. Assume these investments sell for $686 in return for which you receive $2,000 in 29 years. What is the rate of return investors earn on this investment if they buy it for $686?

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