2. Which of the following statement(s) is/are false?

I. When a loan is amortized, a relatively high percentage of the payment goes to reduce the outstanding principal

in the early years, and the principal repayment's percentage declines in the loan's later years.

II. The future value of a cash flow increases as either the discount rate or the number of periods per year

increases, other things held constant.

III. A bond price increases as the discount rate increases, other things held constant.

a. Ionly d. I&IIIonly

b. II only e. None of the above answers

c. III only