Examining an investment opportunity

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You are examining an investment opportunity. It would require you to pay money today and then receive payments semi-annually from that investment. Since the payments you expect to receive are semi-annual, you would like to know your semi-annual version of your own required return. You require 10% per year. What semi-annual rate (i.e. periodic return per six months) do you require (i.e. need to earn such that this implies 10% earned per year when you get to compound semi-annually)?

Reference no: EM13847176

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