A security is currently selling for $8,000 and promises to pay $1,000 annually for the next 9 years, and $1,500 annually in the 3 years thereafter with all payments occurring at the end of each year. If your required rate of return is 7% p. a., should you buy this security and why?
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A security is currently selling for $8,000 and promises to pay $1,000 annually for the next 9 years,...
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