Quiz Ch 05 – T/F Discount Rate’s Effect on Present Value
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: With a lower discount rate, the present value of a given amount is reduced.
True or false: With a lower discount rate, the present value of a given amount is reduced.
True or false: Assuming all else remains constant, more frequent compounding leads to a greater future value.
True or false: The present value is reduced when an annuity is changed into an annuity due.
True or false: A perpetuity represents a specialized category within annuities.
True or false: Present values decrease with an increase in the time to the cash flows.
How do you refer to an interest rate that has been annualized using compound interest?
What does the term “compound interest” encompass?