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UOP FIN 571 Week 1 DQ 2

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<strong>UOP</strong> <strong>FIN</strong> <strong>571</strong> <strong>Week</strong> 1 <strong>DQ</strong> 2<br />

Assume that interest rates have increased substantially. Would<br />

this tend to increase or decrease the market value (meaning<br />

the price an investor in the firm's paper is willing to pay) of a<br />

firm’s liabilities (relative to the book value of liabilities)?<br />

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<strong>571</strong>-<strong>Week</strong>-1-<strong>DQ</strong>-2<br />

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