Rochelle inherits $$3$ million and invests these funds in a laddered portfolio of bonds with an average duration of seven years. Interest rates increase by $100$ basis points, which causes her bonds to decrease in value. The most likely type of risk to which Rochelle is exposed is:

Interest rate risk.

Market risk.

Financial risk.

Business risk.

Mekayla will receive $$100,000$ of taxable income from a client. Compute the NPV of the $$100,000$ if she receives $$50,000$ now $($year $0)$ and $$50,000$ in year $1.$ Assume Mekayla's marginal tax rate is $30\%$ and she has a $6\%$ discount rate.

Numeric Response