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Suppose the term structure of interest rates is shown below: Term year 2 years years 5 years 10 years 20 years Rate KEAR%) 5.00% 4.80%
Suppose the term structure of interest rates is shown below: Term year 2 years years 5 years 10 years 20 years Rate KEAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15% The present value (PV) of receiving S1,100 per year with certainty at the end of the next three years is closest to O A $3,010 OB S3,612 OC. $4,214 OD. $2,408
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