The value of future payments is affected by
A)The level of dividends.
B)Capital gains.
C)The par value.
D)The possibility of nonpayment.

Question

Quizplus · Accepted Answer

The possibility of nonpayment affects the value of future payments, as it introduces risk and uncertainty. If there is a higher likelihood that the payments will not be made in the future, the value of those payments decreases. The level of dividends, capital gains, and par value may also have some impact on the value of future payments, but they are not as directly linked to the risk of nonpayment.

The Value of Future Payments Is Affected by