Suppose the term structure of interest rates is shown below:

The net present value (NPV) of an investment that costs $4320 and pays $1600 certain at the end of one, three, and five years is closest to ________.
A) $91.37
B) $137.05
C) $114.21
D) -$114.21

Question

Suppose the term structure of interest rates is shown below:

The net present value (NPV) of an investment that costs $4320 and pays $1600 certain at the end of one, three, and five years is closest to ________.
A) $91.37 
B) $137.05 
C) $114.21 
D) -$114.21

Quizplus · Accepted Answer

D) 11eaabab_c0b7_8090_b90e_f938476e3626_TB5536_11

Suppose the Term Structure of Interest Rates Is Shown Below