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Consider an Investment That Pays $1000 Certain at the End

Question 54

Multiple Choice

Consider an investment that pays $1000 certain at the end of each of the next four years.If the investment costs $3500 and has an NPV of $74.26,then the four-year risk-free interest rate is closest to:


A) 4.50%.
B) 4.58%.
C) 4.55%.
D) 4.53%.

Correct Answer:

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