Question
You will receive $10 million five years from now. Which of the following statements is (are true? A. The greater the discount rate, the greater
You will receive $10 million five years from now. Which of the following statements is (are true?
A. The greater the discount rate, the greater the present value of the money today
B. The lower the default risk (probability you wont receive the $10 million), the lower the present value of the money today
C. If the time period were increased to ten years, the present value of the money will be greater
D. Both B and C
E. None of the above
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Risk Management And Insurance
Authors: James TrieschmannSandra GustavsonSandra Gustavson, Robert HoytSandra Gustavson, Robert Hoyt, David Sommer
12th Edition
0324183208, 9780324183207
