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 59 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
Great answer, keep it coming :)


dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

For a complete list of videos, visit our video library