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:

World Trade Organization

An international organization designed to supervise and liberalize international trade, dealing with the rules of trade between nations.

Social Control

Mechanisms, strategies, and institutions societies utilize to regulate individual behavior, enforcing conformity and compliance to societal norms.

Frame Alignment Problems

Challenges faced in social movements when attempting to harmonize individual and group interests, values, or views with the overarching objectives or ideologies of the movement.

Pulp Mill Pollution

Environmental contamination resulting from the by-products and wastes of pulp mills, which can harm air quality, water bodies, and ecosystems.