Which of the following will not cause an increase in the present value of a sequence of payments?
A)a reduction in the current interest rate
B)a reduction in expected future interest rates
C)an increase in a future expected payment
D)none of the above

Question

Quizplus · Accepted Answer

All the options listed (reduction in current interest rates, reduction in expected future interest rates, and an increase in a future expected payment) would cause an increase in the present value of a sequence of payments.

Which of the Following Will Not Cause an Increase in the Present