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Question 15 5 pts You are given the following partial table. T! Avgr 2.500 IP 1.000 IN 3.500 4.500 Year 1 2 3 4 5

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Question 15 5 pts You are given the following partial table. T! Avgr 2.500 IP 1.000 IN 3.500 4.500 Year 1 2 3 4 5 6 7 Avg IP 1.000 2.000 2.600 3 200 3.500 5.500 2.500 2.500 2.500 2.500 2.500 2.500 5.700 2.500 2.500 2500 5.000 6.200 4.400 3 200 3.900 6.400 6.900 5.700 Now assume that the Liquidity Preference theory is correct (versus the data for the Pure Expectations theory above), and the Maturity Risk Premium can be defined as (0.16%)(t-1), where is the number of years until maturity. Given this information, determine how much $45,000, to be deposited at the beginning of Year 3, and held over Years 3,4,5 and 6 (4 years), would be worth the end of Year 6. $59,485.50 $60.837.44 $55,429.67 $56,781.61 $58.133.55

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