This topic contains a solution. Click here to go to the answer

Author Question: Use the table for the question(s) below.Suppose the term structure of interest rates is shown ... (Read 46 times)

joe

  • Hero Member
  • *****
  • Posts: 627
Use the table for the question(s) below.

Suppose the term structure of interest rates is shown below:

Term1 year2 years3 years5 years10 years20 years
Rate (EAR%)5.00%4.80%4.60%4.50%4.25%4.15%


Consider an investment that pays $1000 certain at the end of each of the next four years.  If the investment costs $3,500 and has a net present value (NPV) of $74.26, then the four year risk-free interest rate is closest to:
◦ 4.55%
◦ 4.5%
◦ 4.53%
◦ 4.58%


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by joe on Jul 9, 2019

joshbk44

  • Sr. Member
  • ****
  • Posts: 340
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly




joe

  • Member
  • Posts: 627
Reply 2 on: Jul 9, 2019
Gracias!


mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Excellent

 

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

For a complete list of videos, visit our video library