1. The shorter the length of time between a present value and its corresponding future value,
the higher the interest rate used in the discounting to the present value.
the higher the present value, relative to the future value.
the lower the present value, relative to the future value.
None of these options
2. If a bond is quoted at 97.5, it follows that the bond
a. can be purchased for $975.00. b. can be purchased for $97.50. c. is yielding 7.5 percent. d. is trading at a premium.
3. The annual percentage rate indicates the amount of? interest, including the effect of any compounding.
TRUE or FALSE