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Use the following information to answer the question(s) below: Suppose the term structure of risk - free interest rates is given as: Term 1 year
Use the following information to answer the question(s) below: Suppose the term structure of risk - free interest rates is given as: Term 1 year 2 years 3 years 5 years 10 years Rate 2.25% 2.80% 3.20% 4.10% 6.30% The present value of an investment that pays $1000 in two years and $5000 in ten years for certain is closest to: O A. $3707 OB. $4292 O C. $3687 OD. $3660
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