Use the following information to answer the question(s)below:
Suppose the term structure of risk-free interest rates is given as:
Term 1 year 2 years 3 years 5 years 10 years
Rate 2.25% 2.80% 3.20% 4.10% 6.30%
-The present value of an investment that pays $1000 in two years and $5000 in ten years for certain is closest to:
A)$3660.
B)$3687.
C)$3707.
D)$4292.

Question

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The Answer of Use the following information to answer the question(s)below:
Suppose the term structure of risk-free interest rates is given as:
Term 1 year 2 years 3 years 5 years 10 years
Rate 2.25% 2.80% 3.20% 4.10% 6.30%
-The present value of an investment that pays $1000 in two years and $5000 in ten years for certain is closest to:
A)$3660.
B)$3687.
C)$3707.
D)$4292.

Use the Following Information to Answer the Question(s)below