Suppose the Nominal Interest Rate Is Zero

Multiple Choice

Suppose the nominal interest rate is zero. In this situation, the present discounted value of a finite sequence of future payments is equal to which of the following:

A) the sum of zero.
B) the square of the sum of all payments.
C) the sum of all the payments divided by the rate of inflation.
D) the sum of all payments.
E) the average value of each payment.