Question Completion Status: Cash flows occurring in different periods should not be compared unless: interest rates are expected to be stable. the flows occur no more than one year from each other, high rates of interest can be earned on the flows. the flows have been discounted to a common date. QUESTION 5 Store ABC is offering free credit on purchases of over $1,000. You observe that a television can be purchased for nothing down and $4,000 due in one year. Store XYZ offers an identical television for $3,650 but does not offer free credit. Which statement below best describes the real cost of "free" credit? Hint: Find the implied interest rate (like CAGR) assuming PV price at Store XYZ and FV = price at Store ABC. The "free" credit costs about 8.75% The "free" credit costs about 9.13%. The "free" credit costs about 9.59%. "free" credit effectively costs zero percent. QUESTION 6 A corporation has promised to pay $1,000 twenty years from today for each bond sold now. No interest will be paid on the bonds during the twenty years, and the bonds are said to offer a 7% interest rate. Approximately how much should an investor pay for each bond? $70.00 $258.42 $629.56 $857.43 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar