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Suppose the term structure of interest rates is shown below: Term 1 year 2 years 3 years 5 years 10 years 20 years Rate 5.00%

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Suppose the term structure of interest rates is shown below: Term 1 year 2 years 3 years 5 years 10 years 20 years Rate 5.00% 4.80% (EAR%) 4.60% 4.50% 4.25% 4.15% The present value (PV) of receiving $1,700 per year with certainty at the end of the next three years is closest to: O A $5,583 OB. $3,722 OC. $6,513 OD. $4,652

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