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You are offered an investment that will pay you a perpetuity of $1,000 per year forever. Its price is $39,600. What annual rate of return

You are offered an investment that will pay you a perpetuity of $1,000 per year forever. Its price is $39,600. What annual rate of return (discount rate) is implied in this value?

a) 0.00% b) 2.53% c) 3.73% d) 0.05% e) 3.88%

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