Explain why y0u disagree 0r agree with the f0ll0wings statements. The answer sh0u-ld n0t be m0re than three sentences All 0ther things held c0nstant; the future value of an 0rdinary annuity is always having a higher future value than annuity due. All 0ther things held c0nstant, the price 0r interest rate risk of sh0rt-term b0nd is always l0wer than l0ng-term b0nd. Treasury b0nds are riskier than c0rp0rate b0nds.
Explain why y0u disagree 0r agree with the f0ll0wings statements. The answer sh0u-ld n0t be m0re than three sentences All 0ther things held c0nstant; the future value of an 0rdinary annuity is always having a higher future value than annuity due. All 0ther things held c0nstant, the price 0r interest rate risk of sh0rt-term b0nd is always l0wer than l0ng-term b0nd. Treasury b0nds are riskier than c0rp0rate b0nds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Explain why y0u disagree 0r agree with the f0ll0wings statements. The answer sh0u-ld n0t be m0re than three sentences
- All 0ther things held c0nstant; the future value of an 0rdinary annuity is always having a higher future value than annuity due.
- All 0ther things held c0nstant, the price 0r interest rate risk of sh0rt-term b0nd is always l0wer than l0ng-term b0nd.
- Treasury b0nds are riskier than c0rp0rate b0nds.
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