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