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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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