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Finding a present value is the reverse of finding a future value. is the process...

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Finance

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Finding a present value is the reverse of finding a future value. is the process of calculating the present value of a cash flow or a series of cash flows to be received in the future. Which of the following investments that pay will $10,000 in 15 years will have a higher price today? The security that earns an interest rate of 5.50%. The security that earns an interest rate of 8.25%. Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interes rate) of holding the security is 6.80%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment options will exhibit the lower price? O An investment that matures in seven years O An investment that matures in eight years Which of the following is true about present value calculations? O Other things remaining equal, the present value of a future cash flow increases if the discount rate increases. O Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases

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