Use the Table for the Question(s)below

question 41

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 $1 000 at the end of each of the next four years. If the investment costs $3 500 and has a net present value (NPV) of $74.26, then the four-year risk-free interest rate is closest to:

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

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Definitions:

Psychological Maturation

The process of psychological and emotional growth that an individual undergoes, leading to a more stable, mature personality.

Childhood

The period of human development from infancy to puberty, encompassing physical, mental, and emotional growth.

Gross Motor Ability

The capability to perform movements using the large muscles of the body, such as walking, running, and jumping.

Delayed

Occurring at a later time than expected or intended, often resulting in inconvenience or adjustment of plans.