Question: 1. To decrease the amount required today to fund a $10,000 debt due five years from now, you could ________ on your savings. Either decrease

1. To decrease the amount required today to fund a $10,000 debt due five years from now, you could ________ on your savings.

  1. Either decrease the rate of interest or decrease the number of compounding periods per year.

  2. Decrease the number of compounding periods per year.

  3. Decrease the rate of interest earned.

  4. Earn compound interest rather than simple interest.

2. For a premium bond, the coupon rate is more than the:

  1. Market price.

  2. Par value.

  3. Yield to maturity.

  4. Face value rate.

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