an investment's principal or original amount is referred to as a simple interestan b. compound interest c. discount interest d. annuity interest 19-When c a. annual percentage rate b. contract rate c. stated rate d. effective annual rate pounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the: 20 Assume a lender offers you a $40,000, 10% three-year loan that is to be fully amortized with three annual payments. T first payment will be due one year from the loan date. How much will you have to pay each yea? 21-The basic future and present value equations contain four variables. Which one of the following is not included? a. present value (PV) b. future value (FV) c interest rate (r) d. inflation rate () e. number of periods (n) 22- Suppose a firm just issued a $1,000 par value convertible bond. Its conversion ratio is 45 and the stock currently sells for $25 per share. Would it make better financial sense to hold onto the bond or convert it? a. hold onto the bond b. convert the bond c can't tell from this information d. none of the above 23-Which of the following bonds can be redeemed prior to maturity by the firm? a. callable bonds b. convertible bonds c. puttable bonds d. retractable bonds 24- A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as: a. an ordinary annuity b. a deferred annuity c. an annuity due d. an extraordinary annuity