You are expecting to receive $750 at some time in the future.Which of the following would unambiguously increase 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.

Question

Quizplus · Accepted Answer

A decrease in interest rates increases the present value of future payments, and receiving the payment sooner also increases its present value.

You Are Expecting to Receive $750 at Some Time in the Future.Which