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Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: 1 year 2 years 3 years 5 years
Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: 1 year 2 years 3 years 5 years 10 years 20 years Term Rate (EAR96) 5.0096 4.8096 4.6096 4.5096 4.2596 4.1596 The NPV of an investment that costs $2700 and pays $1000 certain at the end of one, three, and five years is closest to: -$71.38. -$100.26. $1665.62. $21.47
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