Use the Table for the Question(s)below

question 30

Multiple Choice

Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
-The present value of receiving $1000 per year with certainty at the end of the next three years is closest to:

• A)$2737.
• B)$2723.
• C)$2733.
• D)$2744.

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Definitions:

Manufacturing Company

An entity engaged in the production of goods using labor, machines, and materials.

Condensation Polymer

A type of polymer formed by the condensation reaction between monomers, releasing a small molecule such as water when they react.

Poly(Ethylene Terephthalate)

A thermoplastic polymer used in fibers for clothing, containers for liquids and foods, and in thermoforming for manufacturing.

Orlon

A synthetic fiber made from a polymer acrylonitrile, used primarily in textiles.