Use the Following Information to Answer the Question(s)below

question 48

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 $2000 in one year and $3000 in three years for certain is closest to:

• A)$4707.
• B)$4685.
• C)$4729.
• D)$5000.

---

Definitions:

Eversion

The movement of turning the sole of the foot outward or away from the midline of the body.

Inversion

In genetics, inversion refers to the reversal of the orientation of a segment of a chromosome. In physics, it can relate to operations that reverse the sign of some physical quantity or spatial coordinates.

Rotator Cuff

A group of muscles and tendons that provide stability and movement to the shoulder joint.

Shoulder

A complex structure made up of several joints that combine with tendons and muscles to allow a wide range of motion to the arm.