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

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Suppose the term structure of interest rates is shown below: 10 20 Term 1 year 2 years 3 years 5 years years years Rate 5.00% 4.20% 4.10% 4.30% 4.25% 4.25% 4.15% (EAR%) The present value of receiving $1000 per year with certainty at the end of the next three years is closest to: O $2,730 O $2,700 $2,743 O $2,760

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