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, the present value of the asset will rise. the current value of the asset will fall. the present value of the asset will fall. the present value of the asset is unaffected. the future value of the asset will rise.
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, the present value of the asset will rise. the current value of the asset will fall. the present value of the asset will fall. the present value of the asset is unaffected. the future value of the asset will rise.
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
Problem 1WNG
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61. 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,
the present value of the asset will rise.
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the current value of the asset will fall.
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the present value of the asset will fall.
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the present value of the asset is unaffected.
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the
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