Question: Using the term structure in Problem 29, what is the present value of an investment that pays $100 at the end of each of years

Using the term structure in Problem 29, what is the present value of an investment that pays $100 at the end of each of years 1, 2, and 3? If you wanted to value this investment correctly using the formula, which should you use?

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\begin{tabular}{lccccccc} Term & 1 year & 2 years & 3 years & 5 years & 7 years & 10 years & 20 years \\ \hline Rate (EAR, \%) & 1.99 & 2.41 & 2.74 & 3.32 & 3.76 & 4.13 & 4.93 \\ \hline \end{tabular}...

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