Which of the following statements is true about a lump sum payment of $10,000 with a nominal 10% rate of interest, compounded semi-annually that is due at the end of five years?

Select one:

a.

The effective rate is greater than 5%

b.

The present value would be greater if the lump sum was due in eight years

c.

The effective rate is equal to 5%

d.

The present value would be greater if interest were compounded monthly