Question
Suppose the term structure of interest rates is shown below: Term 1 year 2 years 3 years 5 years 10 years 20 years Rate 2.0
Suppose the term structure of interest rates is shown below:
| Term | 1 year | 2 years | 3 years | 5 years | 10 years | 20 years |
| Rate | 2.0 | 2.4 | 2.7 | 3.3 | 4.1 | 4.9 |
What is the present value of an investment that pays $1,000 in two years and $2,000 in five years?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
