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Question An annuity provides level annual payments of $1,000 at the end of each year for four years. Term structure of interest rates as of

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Question An annuity provides level annual payments of $1,000 at the end of each year for four years. Term structure of interest rates as of 1/1/2017: Length of Investment Spot Rate 1 year 4.00% 2 years 5.00% 3 years 5.75% 4 years 6.25% X is the present value of the payments as of January 1, 2017. Compute X. Possible Answers A $3,460.15 B $3,498.82 C $3,510.65 D $3,560.29 E $3,610.72

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