Question: Please answer A - C and show your work :) Suppose the term structure of risk - free interest rates is as shown here: a

Please answer A-C and show your work :) Suppose the term structure of risk-free interest rates is as shown here:
a. Calculate the present value of an investment that pays $2,500 in 2 years and $3,000 in 5 years for certain.
b. Calculate the present value of receiving $500 per year, with certainty, at the end of the next 5 years. To find the rates for the missing years in the table, linearly
interpolate between the years for which you do know the rates. (For example, the rate in year 4 would be the average rate in year 3 and year 5.)
c. Calculate the present value of receiving $2,600 per year, with certainty, for the next 20 years. Infer rates for the missing years using linear interpolation. (Hint: Use
a spreadsheet.)
 Please answer A-C and show your work :) Suppose the term

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