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What happens to the present value of the bond payment

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Reference no: EM132985886

Problem 1: Suppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now. What happens to the present value of this bond payment if the interest rate increases?

A. Present value increases
B. Present value is not affected
C. Present value declines

Reference no: EM132985886

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