PPT dal A X 11 X + III. Short answer questions. Show your understandings of the questions below. (25%) 1. What lesson does the future value formula provide for young workers who are looking ahead to retiring some day? 2. Explain the difference between the effective annual rate (EAR) and the annual percentage rate (APR). Of the two, which one has the greater importance and why? 3. Describe the relationships that exist between the coupon rate, the yield to maturity, and the current yield for both a discount bond and a premium bond. 4. Using the dividend growth model, explain why a firm would be hesitant to reduce the growth rate of its dividends. 5. Explain the differences and similarities between net present value (NPV) and the profitability index. 5 dot SAMSUNG