Use the table for the question(s)below.
-If the risk-free rate of interest is 7.5%,then the value of security "B" is closest to:
A)$91.00.
B)$92.50.
C)$93.00.
D)$100.00.

Question

Use the table for the question(s)below. 
-If the risk-free rate of interest is 7.5%,then the value of security "B" is closest to:
A)$91.00. 
B)$92.50. 
C)$93.00. 
D)$100.00.

Quizplus · Accepted Answer

The risk-free rate of interest is typically used as a benchmark for valuing securities. If a security is valued at the risk-free rate, it would be priced at its face value, which is typically $100.00.

Use the Table for the Question(s)below