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You are considering investing in a security that will pay you $3,000 in 27 years. a.If the appropriate discount rate is 9 percent, what is

You are considering investing in a security that will pay you $3,000 in 27 years.

a.If the appropriate discount rate is 9 percent, what is the present value of this investment?

b.Assume these investments sell for $694 in return for which you receive $3,000 in 27 years. What is the rate of return investors earn on this investment if they buy it for $694?

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