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A U . S . Treasury bond will pay a lump sum of $ 1 , 0 0 0 exactly 3 years from today. The
A US Treasury bond will pay a lump sum of $ exactly years from today. The nominal interest rate is semiannual compounding. Which of the following statements is CORRECT? a The periodic interest rate is greater than b The PV of the $ lump sum has a greater present value than the PV of a year, $ ordinary annuity. c The present value would be greater if the lump sum were discounted back for more periods. d The present value of the $ would be larger if interest were compounded monthly rather than semiannually. e The periodic rate is equal to
A US Treasury bond will pay a lump sum of $ exactly years from today. The nominal interest rate is semiannual compounding. Which of the following statements is CORRECT?
a The periodic interest rate is greater than
b The PV of the $ lump sum has a greater present value than the PV of a year, $ ordinary annuity.
c The present value would be greater if the lump sum were discounted back for more periods.
d The present value of the $ would be larger if interest were compounded monthly rather than semiannually.
e The periodic rate is equal to
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