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Ch 5 Practice Bonos

# Ch 5 Practice Bonos - 1 award 10 out of 10 points MC Qu 10...

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1. award: 10 out of 10 points MC Qu. 10 Many people who want to start investing for their future want to... Many people who want to start investing for their future want to start today which implies an annuity stream that is paid at the beginning of the period. Beginning-of-period cash flows are referred to as perpetuities. present values. ordinary annuities. annuities due. 2. award: 10 out of 10 points MC Qu. 11 To compute the present or future value of an annuity due, one co... To compute the present or future value of an annuity due, one computes the value of an ordinary annuity and then divides it by (1 + i ). divides it by (1 - i ). multiplies it by (1 - i ). multiplies it by (1 + i ). 3. award: 10 out of 10 points MC Qu. 12 When computing the future value of an annuity, the higher the co... When computing the future value of an annuity, the higher the compound frequency, the more likely the future value can be calculated. the less likely the future value can be calculated. the higher the future value will be. the lower the future value will be. 4.

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award: 10 out of 10 points MC Qu. 13 While the future value will increase as compounding frequency in... While the future value will increase as compounding frequency increases, the size of each increase in future value diminishes as compounding frequencies increase. diminishes as compounding frequencies decrease. increases as compounding frequencies increase. is independent of the compounding frequency increases. 5. award: 10 out of 10 points MC Qu. 14 Compounding monthly versus annually causes the interest rate to ... Compounding monthly versus annually causes the interest rate to be effectively higher, and thus the future value decreases. is independent of the monthly compounding.
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Ch 5 Practice Bonos - 1 award 10 out of 10 points MC Qu 10...

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