Amortized loan is a loan that has either equal or unequal interest payments over the life of the loan. A) True B) False This morning, you borrowed $13, 400 at a 6.9 percent interest rate. You are to repay the loan principal plus all of the loan interest in one lump sum three years from today. The type of your loan is called pure discount loan. A) True B) False The effective annual rate increases as the number of compounding periods per year increases. A) True B) False Your credit card charges you 1.5 percent interest per month. This means that the interest rate that you really pay is 18 percent interest per year. A) True B) False The current yield is a constant rate that is fixed throughout the life of bond. A) True B) False Use the following information for answering Question 10-12. Bert paid $985 to buy a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. The current yield of this bond is 7.5%. A) True B) False This is a par value bond. A) True B) False Yield to maturity of this bond when Bert purchased must be greater than 7.5%. A) True B) False