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    rate of interest

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    You are offered the opportunity to buy a note for $12,800. The note is certain to pay $2,000 at the end of each of the next 10 years. If you buy the note, what rate of interest will you receive.

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    Solution Preview

    You are offered the opportunity to buy a note for $12,800. The note is certain to pay $2,000 at the end of each of the next 10 ...

    Solution Summary

    The rate of interest is determined.

    $2.49

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