Which of the following will increase the present value of an annuity? The discount rate increases. The discount rate decreases. The number of periods the annuity received increases. Statements b and c are correct. Which of the following will increase the present value of an annuity? The number of periods decreases. The interest rate decreases. The amortization schedule decreases. The effective rate is calculated over fewer years. When saving for future expenditures, we can add the of contributions over time to see what the total will be worth at some point in time. present value future value time value to money payment Which of the following bonds will have the largest percentage increase in value if interest rates decrease by 1%? 2-year, 5% coupon bond 30-year, 10% coupon bond 10-year, zero coupon 30-year, zero coupon If a bond is selling at a discount which of the following statements is correct? The current yield must be greater than the coupon rate. The coupon rate must be greater than the yield to maturity. The bond must have a low bond rating. All of the statements are correct. Which statement is true? The less liquid assets a firm holds, the less likely it is that the firm will experience financial distress. The lower the liquidity ratios, the less liquidity risk a firm has. Liquid assets generate profits for the firm. Extremely high levels of liquidity guard against liquidity crises, but at the cost of lower returns on assets