An investment pays 500 per year for the first 4 years 400


An investment pays $500 per year for the first 4 years, $400 per year for the next 3 years, and $700 per year the following 8 years (all payments are at the end of the year).

If the discount rate if 10% compounding quarterly, what is the fair price of this invesment?

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Financial Management: An investment pays 500 per year for the first 4 years 400
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