Question: Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: 1 year 2 years Term Rate (EAR%) 3

Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: 1 year 2 years Term Rate (EAR%) 3 years 5 years 10 years 20 years 4.60% 4.50% 4.25% 4.15% 5.00% 4.80% What is the NPV of an investment that costs $2500 and pays $1000 certain at the end of one, three, and five years

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