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:

Extremism

The holding of extreme political or religious views and the actions taken to support or achieve them.

Trade Control

Government-imposed restrictions on the free exchange of goods and services between countries, including tariffs, quotas, and import licenses.

Property Rights

Legal rights over the use, control, and transfer of property, which can include intellectual property, real estate, and physical assets.

Political Rights

The rights of citizens to participate in the political process, including the right to vote, join political parties, and hold public office.