Question: A ten - year annuity pays $ 2 , 5 0 0 . Based on the discount rates applied by investors today, the market price

A ten-year annuity pays $2,500. Based on the discount rates applied by investors today, the market price is $22,000. If the price increases to $22,500 tomorrow, that means:
a) the discount rate is higher
b) the discount rate is lower
c) the discount rate is unchanged
d) question cannot be answered without knowledge of todays discount rate

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