Assess students' ability to analyze how interest rate changes affect firm investment decisions, equity valuations, and household borrowing using present-value frameworks. Include problems that require computing NPV and DCF valuations under alternative discount rates, comparing project selection under changing cost of capital, evaluating impacts of rate shocks on stock prices and bond yields, and determining how changes in rates alter consumer loan payments, demand, and borrowing capacity; require comparative-statics interpretation and policy/managerial recommendations.