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You are given the following partial table. IP 1.000 Avg IP 1.000 Year 2 3 4 56 7 O $56,781.61 2.500 2.500 2.500 2.500 2.500
You are given the following partial table. IP 1.000 Avg IP 1.000 Year 2 3 4 56 7 O $56,781.61 2.500 2.500 2.500 2.500 2.500 2.500 O $58,133.55 O $59.485.50 O $55,429.67 O $60,837.44 Avg r* 2.500 5.000 2.500 6.200 2.500 4.400 2.500 3.200 IN 3.500 2.000 4.500 2.600 3.200 5.700 Now assume that the Liquidity Preference theory is correct (versus the data for the Pure Expectations theory above), and the Maturity Risk Premium can be defined as (0.16%) (t-1), where t is the number of years until maturity. Given this information, determine how much $41,000, to be deposited at the beginning of Year 3, and held over Years 3, 4, 5, and 6 (4 years), would be worth at the end of Year 6. 3.900 6.400 n 3.500 5.500 6.900 5.700
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