Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 13

Asset X is expected to deliver 3 future payments. They have present values of, respectively, $1,000, $2,000, and $7,000. Asset Y is expected to deliver 10 future payments, each having a present value of $1,000. Which of the following statements correctly describes the relationship between the current price of Asset X and the current price of Asset Y?
A) Asset X and Asset Y should have the same current price.
B) Asset X should have a higher current price than Asset Y.
C) Asset X should have a lower current price than Asset Y.