Question: A decrease in the rate of interest O has no effect on the present value of future income. increases the present value of future income.

A decrease in the rate of interest O has no effect on the present value of future income. increases the present value of future income. reduces the present value of future income. reduces the present value of future income and reduces the value of $1 today. Question 5 At a 10% rate of interest, the present value or price of a perpetuity paying $50 annually is $5. $50. $500. $5000. Question 6 According to the classical theory of asset prices the price of an asset equals the sum of all expected future income. the price of an asset equals difference between current income and expected future income. O the price of an asset equals the present value of expected future income

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