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Consider an Investment That Pays $1000 Certain at the End

Question 27

Multiple Choice

Consider an investment that pays $1000 certain 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) 4.5%
B) 4.58%
C) 4.55%
D) 4.53%
E) 5.0%

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