Question: For a given nominal interest rate, given years, and a given future cash flow, a decrease in the number of compounding periods per year will
For a given nominal interest rate, given years, and a given future cash flow, a decrease in the number of compounding periods per year will cause the present value to: Decrease May increase, decrease or remain the same depending on the number of years until the money is to be received. Remain the same Increase Will increase if compounding occurs more often than 12 times per year and will decrease if compounding occurs less than 12 times per year
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