Suppose the term structure of interest rates is shown below: Term 1 year 2 years 3 years
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Question:
Suppose the term structure of interest rates is shown below:
Term | 1 year | 2 years | 3 years | 5 years | 10 years | 20 years |
Rate | 2.0 | 2.4 | 2.7 | 3.3 | 4.1 | 4.9 |
What is the present value of an investment that pays $1,000 in two years and $2,000 in five years?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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