Use the Table for the Question(s) Below -Consider an Investment That Pays $1000 at the End of Structure
Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
-Consider an investment that pays $1000 at the end of each of the next four years. If the investment costs $3,500 and has a net present value (NPV) of $74.26, then the four-year risk-free interest rate is closest to:
A) 4.55%
B) 4.58%
C) 4.5%
D) 4.53%
Correct Answer:
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