a. If the discount rate that is used to calculate the present value of a debt obliga- tion's cash flow is increased, what happens to the price of that debt obligation?

b. Suppose that the discount rate used to calculate the present value of a debt obligation's cash flow is x%. Suppose also that the only cash flow for this debt obligation is $200,000 four years from now and $200,000 five years from now. For which of these cash flows will the present value be greater?

AppendixLO1