True or False Questions for Finance

1. Interest can be compounded more frequently than annually

T/F

2. The investment profile shows the relation between the net present value of an investment and the discount rate

T/F

3. Making annual payments, starting today, is the only way to save for future spending

T/F

4. Present value of a bond is the sum of the present value of interest payments and present value of its face value

T/F

5. A perpetuity is a stream of even cash flow that continues forever

T/F