You Are Expecting to Receive $1,000 at Some Time in the Future.Which

question 144

Multiple Choice

You are expecting to receive $1,000 at some time in the future.Which of the following would unambiguously decrease the present value of this future payment?

• A) Interest rates rise and you get the payment sooner.
• B) Interest rates rise and you have to wait longer for the payment.
• C) Interest rates fall and you get the payment sooner.
• D) Interest rates fall and you have to wait longer to get the payment.