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Which of the following statements is CORRECT? If a loan or investment has annual payments with annual interest compounding, then the effective, periodic, and nominal rates of a. interest will all be different ob. The proportion of the payment that goes toward interest on a fully amortized loan increases over time. An investment that has a nominal rate of 89 with semiannual payments will have an effective rate that is no less than 896. The present value of a 5-year, $250 ordinary annuity will exceed the present value of a 5-year, 5250 annuity due. O c. O d. Suppose the economy has three states. The probability of each state and the corresponding market return is listed below: Economy Probability Market Recession 0.3 996 Average 0.4 496 Boom 0.3 1896 What is the expected return of the market? 8.596 a. 6.9.796 10.096 C. d. 4.096