When computing an interest or growth rate, the rate will increase the smaller the future value, holding present value and the number of periods constant.
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When computing an interest or growth rate, the rate will increase the smaller the
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- What effect do interest rates have on the calculation of future and present value? How does the length of time affect future and present value? How do these two factors correlate?Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?When calculating present value, the the interest rate, the smaller the present value amount. smaller larger
- Will the actual realized yields be equal to the expected yields if the interest rates change? If not, how will they differ? Kindly elaborate your answer.An decrease in the interest rate will: Multiple select question. increase the future value decrease the present value decrease the future value increase the present valueWhat happens to a future value is you increased the rate, r? What happens to a present value?
- What will happen to the present value if the growth rate exceeds the discount rate? the present value will be infinite the present value will be zero the present value will be unknown No answer text provided.the constant growth model is?A rates. yield curve states that the long-term interest rate is higher than the short-term interest
- Consider the money market. What happens and why to interest rates during an economic expansion (e.g., a decrease in Y)? Go through the complete process in detail explaining in words.Which one of the following statements is correct? Multiple Choice O Time and future values are inversely related, all else held constant. Interest rates and time are positively related, all else held constant. An increase in time increases the future value given a zero rate of interest. All else held constant. When the positive interest rate increases, the present value decreases. All else held constant.. Suppose interest rates are increasing enough that it can be modeled with r →∞.(a) What is the value of a Call?(b) What is the value of a Put?(c) Explain both answers in terms of finance.