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P5-30 (similar to) Question Help Suppose the term structure of risk-free interest rates is as shown below: 1 yr 2 3 yr 5 7 yr

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P5-30 (similar to) Question Help Suppose the term structure of risk-free interest rates is as shown below: 1 yr 2 3 yr 5 7 yr 10 yr 20 yr Term Rate (EAR %) 2.02 2.42 2.74 3.33 3.74 4.12 4.95 What is the present value of an investment that pays $105 at the end of each of years 1, 2, and 3? If you wanted to value this investment correctly using the annuity formula, what discount rate should you use

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