Question: true or false. 1. (T or F ) When a bond sells at a premium, the discount rate of the bond exceeds its coupon rate.

true or false. true or false. 1. (T or F ) When a bond sells

1. (T or F ) When a bond sells at a premium, the discount rate of the bond exceeds its coupon rate. 2. (T or F) As the interest rate increases, the present value of the future cash inflows decreases. 3. ( T or F ) One of the potential benefits of investing early for retirement is that an investor can receive greater benefits from the compounding of interest. 4. (T or F) The present value of a future amount is positively related to the number of years from now in which it will be paid. 5. ( T or F) Other things being the same, depositors can earn more interest under annual compounding than under monthly compounding

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