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erm in years: 2 3 4. Cate: 1.8% 2.25% 2.30% 2.66% 3.13% he table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different inv resent value (PV) of cash flows from an investment that yields $5,000 at the end of each year for the next four years

erm in years: 2 3 4. Cate: 1.8% 2.25% 2.30% 2.66% 3.13% he table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different inv resent value (PV) of cash flows from an investment that yields $5,000 at the end of each year for the next four years

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4P: Determinant of Interest Rates The real risk-free rate of interest is 4%. Inflation is expected to be...
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Term in years: 3 4 Rate: 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $5,000 at the end of each year for the next four years? O A. $22,639 O B. $15,093 OC. $18,866 O D. $26,412
Transcribed Image Text:Term in years: 3 4 Rate: 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $5,000 at the end of each year for the next four years? O A. $22,639 O B. $15,093 OC. $18,866 O D. $26,412
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