$1,000 is expected to be received 10 years from now. The present value of this $1,000 future...

Question:

$1,000 is expected to be received 10 years from now. The present value of this $1,000 future cash flow is:
1: Always greater than $1,000.
2: Greater if the interest rate goes up.
3: Less than $1,000 if interest rates are positive.
4: Lower if the goes down.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...