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Problem 1: Beginning in 10 years, (end of years 10 to 12) you will receive 3 annual installments of $50,000 each. If interest rates are 6%, what are these benefits worth to you today?

Problem 2: What annual return would you be earning if you were able to purchase a $1000 par, zero coupon bond for $557 that had 12 years until maturity?

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