Consider that you were given a US savings bond that will pay $100 when it matures in ten years. What happens if the interest rate rises to the present value of this bond payment? Why happens if the interest rate rises to the present value of this bond payment? A. Increases in present value  B. The current value is unaffected.  C. A decrease in present value

Essentials of Economics (MindTap Course List)
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Chapter19: The Basic Tools Of Finance
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Consider that you were given a US savings bond that will pay $100 when it matures in ten years. What happens if the interest rate rises to the present value of this bond payment?
Why happens if the interest rate rises to the present value of this bond payment?

A. Increases in present value 
B. The current value is unaffected. 
C. A decrease in present value  

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