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Earthgirl225 Earthgirl225
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A year ago
A Canada government bond promises to pay a lump sum of $3,000 exactly5years from today. The nominal interest rate is10%, semiannual compounding. Which of the following statements is correct?


▸

The periodic interest rate is greater than 5%.



▸

The periodic rate is less than 5%.



▸

The present value would besmallerif the lump sum were discounted back forfewerperiods.



▸

The present value of the $3,000 would be smaller if interest were compoundedquarterlyrather than semiannually.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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elixy19elixy19
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A year ago
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Earthgirl225 Author
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A year ago
Brilliant ツ
Ifekwunigwe
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Yesterday
This helped my grade so much Perfect
my2redeyes
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2 hours ago
Thank you, thank you, thank you!
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