Suppose the Term Structure of Interest Rates Is Shown Below

question 74

Multiple Choice

Suppose the term structure of interest rates is shown below:

The net present value (NPV) of an investment that costs $4320 and pays $1600 certain at the end of one, three, and five years is closest to ________.

• A) $91.37
• B) $137.05
• C) $114.21
• D) -$114.21

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Definitions:

Child-care Workers

Individuals who provide care and supervision for children, especially during working hours for parents, often in settings like daycare centers or private homes.

Intersectional Theory

An analytical framework which identifies how interlocking systems of power impact those who are most marginalized in society.

Race

A social construct used to categorize humans into large and distinct populations or groups by anatomical, cultural, ethnic, genetic, geographical, historical, linguistic, religious, or social affiliation.

Ethnicity

A category of people who identify with each other based on shared attributes such as cultural heritage, language, history, ancestry, or nationality.