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:

Degrees of Freedom

Degrees of freedom refer to the number of values in a calculation which are free to vary without violating the constraints of the calculation.

Chi-Square

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorical datasets.

Row Variable

A row variable in statistical or data analysis refers to a variable that is presented horizontally in a table or dataset, representing different categories or groups for analysis.

Column Variable

A variable whose values are laid out in columns in a table or dataset, facilitating vertical comparison across data points.