1. True/False (Explain): Effective interest rate is always higher than the corresponding nominal Interest rate. 2. Which of the following cash flow stream would you choose? Which one would be your last choice? Why? (make sure that your decision makes financial sense) Period - 1 2 3 4 Option 1 1000 1000 2000 4000 Option 2 2000 2000 2000 2000 Option 3 4000 2000 1000 1000 Option 4 6000 2000 0 0 3. What sum of money now is equivalent to $8250 four years later, if interest rate is 4% per 6- month period