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Consider an Investment That Pays $1,000 with Certainty at the End

Question 25

Multiple Choice

Consider an investment that pays $1,000 with certainty at the end of each of the next four years.If the investment costs $3,500 and has an 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%

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