Assume That the Nominal Interest Rate Is Equal to 0

question 25

Multiple Choice

Assume that the nominal interest rate is equal to 0. Use this information and the information about the payments provided below, rank the following three sequences of payments according to their present value.

• A) B > A > C
• B) A > C > B
• C) C > B > A
• D) A > B > C
• E) None of the above.

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