e. None of the above 21 Which of the following financial assets would be most susceptible (vulnerable) to a decline in value if interest rates increased? a. a short term fixed income financial asset (ex. short term bond) b. a long term fixed income financial asset (ex. long term bond) C. a long term variable interest rate income financial asset d. they would all be approximately equally susceptible to a decline in value. e. None of the above or insufficient information 22 In 10 years you will begin receiving $155 dollars per year in perpetuity from your grandparent's family trust fund (first payment is exactly 10 years from today). You consider these payments essentially risk free and have decided to discount them at a constant risk free rate of 6.5%. What is the present value today of these future cash flows? (Hint: draw a time line to illustrate exactly the cash flows for this problem.) a. 1353 b. 2385 C. 1270 d. 146 e. 1550 inngl