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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 (EAR%)

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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 (EAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15% The net present value (NPV) of an investment that costs $2,000 and pays $1000 certain at the end of one, three, and five years is closest to: OA. -$2,217 OB. $629 C. $3,326 D. - $629

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