True$/$False

State whether the following statements are true or false. You do NOT need to provide a justification.

a$)$ Consider a security that will pay us $$100$ in year one and $$150$ in year two. Its present value should equal

$$250.($True $/$ False$)$

b$)$ On a mortgage, the present value of all monthly payments should equal the amount we borrow today.

$($True $/$ False$)$

c$)$ An employer offers to pay its employee bonus in one of the following ways. Employees can choose between:

Option $1$: receive $$3,000$ two years from today

Option $2$: receive $$3,000$ five years from today

The present value of Option $1$ is always higher than Option $2\text{'}$s present value as long as the interest rate

is positive. $($True $/$ False$)$