Use the Following Information to Answer the Question(s)below

question 46

Multiple Choice

Use the following information to answer the question(s) below:
Suppose the term structure of risk-free interest rates is given as:
Term 1 year 2 years 3 years 5 years 10 years
Rate 2.25% 2.80% 3.20% 4.10% 6.30%
-The present value of an investment that pays $1000 in two years and $5000 in ten years for certain is closest to:

• A)$3660.
• B)$3687.
• C)$3707.
• D)$4292.

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Definitions:

Time Frame

A period during which a sequence of events or an action takes place or is completed.

Co-occurring Psychiatric Disorder(s)

The presence of two or more psychiatric disorders in an individual at the same time, often requiring integrated treatment.

Secondary Substance Abuse Model

A theory suggesting that substance abuse may develop due to the influence of external factors such as environmental stressors, rather than primary addiction alone.

Early Remission

A phase in the treatment of an illness where symptoms are reducing or disappearing, but the complete recovery criteria are not yet fully met.