Which of the following statement is incorrect? O An annuity that goes on forever is called a perpetual annuity or a perpetuity. O Most of the answers are correct. O The higher the number of periods, the higher the future value. O With an brdinary annuity, the cash payments occur at the beginning of each time period. O Simple interest is the interest earned only on the original principal amount invested. Question 25 1 pts Which of the following statement is correct? All the answers are incorrect. O A provision in the loan agreement (the indenture) that provides security to the lender in case of default will reduce the bond's value, compared with a loan agreement without a security provision. O Subordinated debenture holders have more risk than senior debenture holders for a given company. Junk bonds have a bond rating above investment grade. O According to Moody's ratings, an investment grade bond would have a rating of Ba1 or below