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Suppose the term structure of risk-free interest rates is as shown below: a. Calculate the present value of an investment that pays $1,000 in two

image text in transcribed Suppose the term structure of risk-free interest rates is as shown below: a. Calculate the present value of an investment that pays $1,000 in two years and $4,000 in five years for certain. which you do know the rates. (For example, the rate in year four would be the average rate in year three and year five) a. Calculate the present value of an investment that pays $1,000 in two years and $4,000 in five years for certain. The present value of the investment is $. (Round to the nearest dollar.) which you do know the rates. (For example, the rate in year four would be the average rate in year three and year five.) The present value of the investment is $. (Round to the nearest dollar.) The present value of the investment is $. (Round to the nearest dollar.)

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