as the interest rate 1a) The present value of an expected future payment increases. A) falls B) rises C) is constant D) is unaffected 16) What is the present value of $500.00 to be paid in two years if the interest rate is 5 percent? A) $453.51 B) $500.00 C) $476.25 D) $550.00 1c) A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as a A simple loan. B) fixed-payment loan C) coupon bond. D) discount bond 1d) A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond