To find the future value of a single amount of money

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Reference no: EM131022486

Which of the following are false?

a. To find the future value of a single amount of money, the financial manager uses discounting.

b. The amortization of a loan involves creating an annuity out of a present amount.

c. The discount rate of a bond is synonymous with the bond's required return.

d. An annuity due is an annuity for which the payment occurs at the end of each period.

e. A dollar that is received in year 2 will be more valuable than a dollar received in year 1 assuming a constant rate of interest.

Reference no: EM131022486

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