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Question 9 Security A pays $100 annually forever, starting at the end of this year. Security B pays $100 annually forever, starting at the end
Question 9 Security A pays $100 annually forever, starting at the end of this year. Security B pays $100 annually forever, starting at the end of this year, and grows at a rate (g) of 3% annually. If the interest rate decreases from 10% to 6%, what will happen to the present value of these two securities? O The present value of Security A will decrease more than the present value of Security B We do not have enough information O The present value of Security B will decrease more than the present value of Security A The present value of Security A will increase more than the present value of Security B The present value of Security B will increase more than the present value of Security A 1 pts
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