The implication of interest rate risk exposure with fixed future cash flows is that as market interest
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Question:
The implication of interest rate risk exposure with fixed future cash flows is that as market interest rates increase, the (present) value of those fixed future cash flows
A) Decreases
B) Increases
C) Does not change, since the cash flows are fixed amounts
D) None of the other responses are correct, since interest rate risk and values are essentially unrelated concepts
Expert Answer:
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