You are considering investing in a security that will pay you 2,000 in 25 years. If the appropriate discount rate is 9 percent what is the present value of this investment? Assume these investments sell for $1,103 in return for which you receive $2,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for 1, 103 ?

You are considering investing in a security that will pay you 2,000 in 25 years. If the appropriate discount rate is 9 percent what is the present value of this investment? Assume these investments sell for $1,103 in return for which you receive $2,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for 1, 103 ?

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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Similar questions

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You decide to set aside $120 a month for your future. Assuming a real interest rate of 7.5%, how much will you have after 25 years? How much more would you have if you invested for 30 years?
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