Term in years:34Rate: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 thepresent 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. $22,639O B. $15,093OC. $18,866O D. $26,412

Present value of cash flow is the value of cash flow that is equivalent to the value today…

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

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

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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Term in years: Rate: 1 2 3 4 5 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? OA. $22,639 OB. $15,093 OC. $18,866 OD. $26,412
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