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What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year?

What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year? a. 10.14% b. 5.34% c. 2.53% d. 10.68% e. 5.07%
Transcribed Image Text:What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year? a. 10.14% b. 5.34% c. 2.53% d. 10.68% e. 5.07%
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