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You are considering investing in a security that will pay you ?$2,000 in 31 years. a. If the appropriate discount rate is 8 percent?, what is the present value of this? investment? b. Assume these investments sell for $525 in return for which you receive ?$2,000 in 31 years. What is the rate of return investors earn on this investment if they buy it for $525?

Financial Management, Finance

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