1. Which one of the following will increase the future value of a lump sum invested today?
a. decreasing the amount of the lump sum
b. increasing the rate of interest
c. paying simple interest rather than compound interest
d. paying interest only at the end of the investment period
e. shortening the investment time period
2. The coupon is the:
a. amount of discount received when a bond is purchased
b. amount paid to a bond dealer when a bond is purchased
c. difference between the bid and ask price
d. annual interest divided by the current bond price
e. stated interest payment on a bond