Question: 4. Based on your answer to 3, fill in the blanks in the following statement regarding the relation between PV and interest rate in general.

4. Based on your answer to 3, fill in the blanks in the following statement regarding the relation between PV and interest rate in general. Other things being equal, the higher the discount rate, the ________ the present value. (10 points--yes! 10 points for one word! please remember this and we will revisit it in later chapters on bonds, stocks, and capital budgeting)

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