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9. If you were offered the option of receiving $1 oooooo today or receina amount one year from now, which option would you choose and

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9. If you were offered the option of receiving $1 oooooo today or receina amount one year from now, which option would you choose and why? at a certain rate of return for a certain period of time. (True/False) 11. The present value of a $100,000 lump paid one year from today is? (a) $100,000 (b) More than $100,000 (c) less than $100,000 (d) need more information 12. The present value in a 30 year mortgage loan calculation is the: (a) Total amount of payments required over the 30 year period (b) Original Loan principal balance (o) Total Interest to be paid over the 30 year period (d) Interest Rate 13. The present value of $100,000 to be paid one year from today will be greater if the appropriate discount rate is 8% than if the appropriate discount rate is 5% (True/False) . If you want to buy a publicly traded $10,000 bond with a 6% nominal interest rate but the market rate for the same bond today is 5% then you will have to pay: 4 (a) Less than $10,000 (c) exactly $10,000 (d) need more information (b) More than $10,000 The legal agreement (contrac) that governs the relationship t etween an issuing company and bondholders is a(n)? (a) Debenture (b) Indebtedness c) Oral Contract (d) Indenture

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