IL Sl tu stay n Protected View Enable Editing A. TRUE /FALSE QUESTIONS Enter "True" orFalseon the blank preceding each question 1. A time line" can be drawn to illustrate the cash flows associated with a given nvestment 2. Calculating the present value of an expected cash flow is also known as 3. An "annuity due" will always be worth less than an otherwise comparable 4. With a "perpetuity." the periodic cash flow stream continues without end 5. Compounding more frequently than once per year results in a lower effective 6. U.S. Treasury bills (T-bills) are considered to be a very safe investment in compounding. "ordinary annuity," because interest will compound for an additional time period interest rate, because you are earning interest on interest more frequently terms of being risk-free. 7. A downward-sloping yield curve reflects expectations of higher future inflation and higher future interest rates