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Compute the present value of a risk-free five-year annuity of $2,500 per year, given the following yield curve for January 2019. Year Yield 1 0.35%

Compute the present value of a risk-free five-year annuity of $2,500 per year, given the following yield curve for January 2019.

Year

Yield

1

0.35%

2

0.79%

3

1.16%

4

1.69%

5

2.11%

a.

12,874
b.

13,569
c.

11,957
d.

10,500

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