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You have a guaranteed contract from an investment firm which will pay you $20,000 in exactly 6 years (i.e. at the end of year 6).

You have a guaranteed contract from an investment firm which will pay you $20,000 in exactly 6 years (i.e. at the end of year 6). If you can sell this contract at a fair price for $2,000 today, what is the implied annual rate of return on the contract?

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