c$.$ Calculate the present value of receiving $$2,300$ per year, with certainty, for the next $20$ years. Infer rates for the missing years using lit

a spreadsheet.$)$

Data table

$0$ the nearest $c$

or the missing $y$

and year $5.)$

hearest cent.$)$

y years using liSuppose the term structure of risk$-$free interest rates is as shown here:

$.$

a$.$ Calculate the present value of an investment that pays $$1,000$ in $2$ years and $$2,000$ in $5$ years for certain.

b$.$ Calculate the present value of receiving $$500$ per year, with certainty, at the end of the next $5$ years. To find the rates for the missing years in the table, linearly interpolate

between the years for which you do know the rates. $($For example, the rate in year $4$ would be the average rate in year $3$ and year $5.)$

c$.$ Calculate the present value of receiving $$2,300$ per year, with certainty, for the next $20$ years. Infer rates for the missing years using linear interpolation. $($Hint: Use

a spreadsheet.$)$

a$.$ Calculate the present value of an investment that pays $$1,000$ in $2$ years and $$2,000$ in $5$ years for certain.

The present value of an investment that pays $$1,000$ in $2$ years and $$2,000$ in $5$ years for certain is $$2652\mathrm{.}15.($Round to the nearest cent.$)$

b$.$ Calculate the present value of receiving $$500$ per year, with certainty, at the end of the next $5$ years. To find the rates for the missing years in the table, linearly interpolate

between the years for which you do know the rates. $($For example, the rate in year $4$ would be the average rate in year $3$ and year $5.)$

The present value of receiving $$500$ per year, with certainty, at the end of the next $5$ years is $$2,296\mathrm{.}43.($Round to the nearest cent.$)$

c$.$ Calculate the present value of receiving $$2,300$ per year, with certainty, for the next $20$ years. Infer rates for the missing years using linear interpolation. $($Hint: Use

a spreadsheet.$)$

The present value of receiving $$2,300$ per year, with certainty, for the next $20$ years is $ $(?)$

Calculate the present value of receiving $$2,300$ per year, with certainty, for the next $20$ years. Infer rates for the missing years using lit

a spreadsheet.$)$

Data table

$0$ the nearest $c$

or the missing $y$

and year $5.)$

hearest cent.$)$

y years using li

$($Round to the nearest cent.$)$