EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103145947
Author: DeMarzo
Publisher: PEARSON
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Chapter 3.2, Problem 2CC
Summary Introduction

To discuss: The effects of value today of a promise of money in one year, when the interest rates rises.

Introduction:

The rate at which a person exchanges his money today in comparison with future rate is estimated by the current interest rates.

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Which of the following changes would increase the present value of a future payment? (check all that apply) Decrease in the number of years until the future payment is received Increase in the interest rate Increase in the amount of the payment Decrease in the interest rate Increase in the number of years until the future payment is received
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EBK CORPORATE FINANCE

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