Answer the following statements true (T) or false (F)
1) Compound interest refers to the multiple interest rates an investor will be paid in a diversified
portfolio.
2) A 10 percent rate of interest will increase the value of an asset more quickly if the interest is
compounded.
3) Future value measures the present-day value of returns or costs expected to arrive in the
future.
4) The present value of a stream of lottery payments is less than the size of the stated jackpot.
1) F
2) T
3) F
4) T
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Which bond would someone in a 35% tax bracket choose to buy: a municipal bond with an interest rate of 7% or a corporate bond with an interest rate of 10%?
What will be an ideal response?
The president of the United States can obtain a court injunction that will stop a strike for an 80-day "cooling-off"period if the strike is expected to imperil national safety or health. This power is granted in the
A) Wagner Act. B) Landrum-Griffin Act. C) National Industrial Recovery Act. D) Taft-Hartley Act.