nyingi 17. Which of the following is incorrect regarding annuities? a. A higher interest rate will result in the lower present value of an annuity. b. A higher interest rate will result in the higher future value of an annuity. c. Higher payments will result in the lower future value of an annuity. d. Higher payments will result in the higher future value of an annuity. e. All of the other answers are correct. 18. Vandelay Corporation is offering 5.6% coupon bonds with a par value of $1,000. The bonds are quoted at 98.2 and will mature in 16 years. The bonds pay interest semiannually. What is the current yield on the bonds? a. 5.60% b. 5.70% c. 2.80% d. 2.85% e. 4.22% 19. Russell Dalrymple plans to purchase $50,000 of bonds. Russel's financial advisor suggested that Russell consider the following two bonds: A Kel Varnsen corporate bond with a current yield to maturity of 6.60% and a Commonwealth of Massachusetts tax-exempt municipal bond with a current yield of 4.40%. Which of the following is correct? a. If Russell's tax rate is 40.00%, he is better off purchasing the Kel Varnsen corporate bond. b. If Russell's tax rate is 20.00%, he is better off purchasing the Commonwealth of Massachusetts tax-exempt municipal bond. c. If Russell's tax rate is 33.33%, he is indifferent regarding which bond to purchase. d. No matter what Russell's tax rate is, he should purchase the Kel Varnsen corporate bond. e. The maturity date of both bonds are needed to help Russell make a decision. 20. Which of the following is correct regarding a 5-year amortizing loan, with monthly payments? a. The total payments in the first year are greater than the total payments in the fifth year. b. The total payments in the first year are less than the total payments in the fifth year. c. The total interest paid in the fifth year is greater than the total interest paid in the first year. d. The total principal paid in the fifth year is greater than the total principal paid in the first year. e. None of the other answers are correct