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Which of the following statements is FALSE? (more then one may be correct) The highest interest rate, for a given horizon, is the rate paid
Which of the following statements is FALSE? (more then one may be correct)
The highest interest rate, for a given horizon, is the rate paid on U.S. Treasury securities
The equivalent after-tax interest rate is r(1 - t)
The actual return kept by an investor will depend on how the interest is taxed.
It is important to use a discount rate that matches both the horizon and the risk of the cash flows
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