1. The present value of annuity received at the beginning of each period is more than the present value of annuity received at the end of each period. * O A) True O B) False 2. Suppose that you know that AUDI Bank pays 5% interest compounded monthly while BOB bank pays 5.25% interest compounded quarterly, then AUDI bank has a higher effective annual interest rate than BOB bank. * A) True B) False. 3. Sixty years ago, your grandparents opened two savings accounts and deposited $250 in each account. The first account was with City Bank at 3.6 percent, compounded annually. The second account was with Country Bank at 3.65 percent, compounded annually. Then the City Bank account has paid $48.19 more in interest than the Country Bank * O A) True O B) False 4. All else held constant, the present value of a bond increases when the Coupon interest rates decreases A) True O B) False