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Question: the present value of promise to pay 100 one year...

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s. The present value of a promise to pay $100 one year from now is approximately $90.91 if the interest rate is i if ercent. a. True b. False Which of the following statements is true? to individuals because a. Interest rates charged well-known corporations are higher than rates charged corporations can afford it. b. If people expect higher rates of inflation, the market interest rate will decrease because fewer people will borrow. c. Interest rates in politically and economically unstable countries are lower than rates in stable countries. d. The risk of doing business in a high-crime area is greater than that in a safe area, and the cost of borrowing also greater. e. The lower the tax rate, the greater the cost of borrowing.
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