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    Exam 12: Annuities: Special Situations
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    The Fair Market Value of a Preferred Share Is $45
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The Fair Market Value of a Preferred Share Is $45

Question 74

Question 74

Short Answer

The fair market value of a preferred share is $45. The share pays a quarterly payment of $.65. An investor is able to purchase the share for $42. What will be the investor's annually compounded rate of return?

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