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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
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
Decreases
Increases
Does not change, since the cash flows are fixed amounts
None of the other responses are correct, since interest rate risk and values are essentially unrelated concepts
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