Question
Which of the following statements is TRUE? A) If interest is compounded more than one year, the EAR would be lower than the APR B)
Which of the following statements is TRUE?
A) If interest is compounded more than one year, the EAR would be lower than the APR
B) The nominal interst rate represents the purchasing power rate
C) Interest rates in the U.S. were extremely high in the early 1980s because of high inflation premiums
D) The nflation premium is estimated by the author to be the smallest component of interest rates in the period 1950-1999
Please tell me why the other 3 answers are false
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
978-1259722653
