Which statement is false?

• A. The real interest rate is not part of the risk-free rate.
• B. Present value increases as the discount rate decreases.
• C. The future value of an annuity due would be less than the future value of an otherwise identical ordinary annuity.
• D. The price and yield to maturity of a bond are inversely related.

Which of the following interest rates would have a high illiquidity premium?

• A. the rate of a credit card
• B. the rate on a home mortgage loan
• C. the rate on a federally-backed student loan
• D. All of the above would have a high illiquidity premium.