571 DQ 2 for Wk 1 and DQs 1 and 2 Wk 2

571 DQ 2 for Wk 1 and DQs 1 and 2 Wk 2

WK.1DQ1) Assume that interest rates have increasedsubstantially. Would this tend to increase or decrease the marketvalue of a firms liabilities (relative to the book value ofliabilities)?


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