When Considering the Present Value of Any Financial Asset That

question 85

Multiple Choice

When considering the present value of any financial asset that makes a stream of payments in the future, we know that if the market interest rate falls,

• A)the present value of the asset is unaffected.
• B)the current value of the asset will fall.
• C)the present value of the asset will rise.
• D)the present value of the asset will fall.
• E)the future value of the asset will rise.

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