Use the Table for the Question(s) Below

question 7

Multiple Choice

Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:

-Consider an investment that pays $1000 certain at the end of each of the next four years.If the investment costs $3,500 and has an NPV of $74.26,then the four year risk-free interest rate is closest to:

• A) 4.5%
• B) 4.58%
• C) 4.55%
• D) 4.53%

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Definitions:

Motivational Practices

Strategies or methods applied to encourage and increase motivation among individuals or groups.

Sound Research

Investigations or studies that are methodologically rigorous, reliable, and valid.

Proven Track Record

Evidence or history showing consistent success or reliability in performance.

Organizational Culture

The shared values, beliefs, norms, and practices that guide the behavior of people within an organization.