An investment that has nominal rate

Assignment Help Financial Management

Reference no: EM13889525

Which of the following statements is CORRECT?

a. An investment that has a nominal rate of 6% with semi annual payments will have an effective rate that is smaller than 6%.

b. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due

c. If a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%

d. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.

Reference no: EM13889525

Questions Cloud

Write the net ionic equation for the conversion of iodine : Write the net ionic equation for the conversion of iodine, I2, to iodine, I-. What kind of reaction is this?

Noncallable treasury-corporate bonds with different ratings : Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: • T-bond = 7.72% • AAA = 8.72% • A = 9.64% • BBB = 10.18% The difference in rates among these issues were most probably caused by:

The standard free energy change of hydrolysis : The standard free energy change of hydrolysis (at 298 K) for acetyl phosphate (shown below) isΔG°′ = - 42.3 kJ/mol.Acetyl-P + H2O → acetate + Pi

The present value of this series of receipts is closest : You receive $700 at the end of year 1, $800 at the end of year 2, $900 at the end of year 3 and so on for 20 years so you receive $2,600 at the end of year 20). The Present Value of this series of receipts is closest to what number below? Assume i = ..

An investment that has nominal rate : An investment that has a nominal rate of 6% with semi annual payments will have an effective rate that is smaller than 6%. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due. If a loan has..

Implementing an accounting information system : i) Read the case study 'Success to Succession ii) Identify the importance of wetware costs. iii) Identify an organisation implementing an Accounting Information System.iv) Discuss the relevance of wetware costs to the implementation in the organisati..

What is ds°' for the reaction at 298 k : What is ΔS°′ for the reaction at 298 K if ΔG°′ = -28.3 kJ/mol and ΔH°′ = +3.9kJ/mol?I'm not sure how to find ΔG°′ without knowing the equilibrium constant (Keq), I think I'm supposed to use this equation: ?G=?H-T?S but I don't know how to get ?G fro..

About the highest future value : At the end of 10 years, which of the following investments would have the highest future value? Assume that the effective annual rate for all investments is the same and is greater than zero.

What are the regulatory points of the citric acid cycle : What are the regulatory points of the citric acid cycle?

User Account

All Pages