Security is projected to generate $5000 per year for 15 years.
We plan to purchase a security which offers $5000 per year for 15 years. The furst payment occurs 10 years from now. If the required return is 12% per annum what is:
a) Present value of investment
b) If we want to sell the security at the end of year 4 what is the market price for it (with the same 12% required return)?
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