Quiz Ch 05 – T/F Relationship Between Nominal Dollars and Purchasing Power
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Nominal dollars are indicative of their purchasing power.
True or false: Nominal dollars are indicative of their purchasing power.
True or false: To achieve the same return when compounding, a semi-annual interest rate should be half of the annual rate.
True or false: Present values decrease with an increase in the time to the cash flows.
True or false: One dollar tomorrow holds a higher value than one dollar today.
True or false: “Constant dollars” pertains to uniform loan amortization payments.
True or false: A mortgage loan is an instance of an amortizing loan, where a portion of each monthly payment covers interest, and the rest diminishes the loan balance.
True or false: When calculating present value, we utilize an interest rate, referred to as “r,” as the discount rate to discount the future value.
How do you refer to an interest rate that has been annualized using compound interest?
In Canada, perpetuity is commonly known as:
How would you classify the annual scholarships provided by the Jones Brothers’ trust fund?