1. When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the _____ of the investment. If we express it in terms of dollars in the future, we call it the _____.
present value; future value
future value; present value
ordinary annuity; annuity due
discount factor; discount rate
2. What type of bond is best to purchase when utilized in an IRA?
a. zero coupon
b. US Treasury
c. Municipal
d. Federal angency