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:

Genitalia

The external and internal sex organs that are involved in sexual reproduction and function.

Unambiguous

Something that is clear and precise, leaving no room for doubt or confusion.

Optimal Gender

The most favorable or desirable expression or identity of gender for an individual, where they feel most comfortable and true to themselves.

Physicians

Medical professionals who diagnose and treat illnesses, prescribe medication, and provide health advice and care.