U)S.Treasury bond will pay a lump sum of $1,000 exactly 3 years from today.The nominal interest rate is 6%, semiannual compounding.Which of the following statements is CORRECT?
A)The periodic interest rate is greater than 3%.
B)The periodic rate is less than 3%.
C)The present value would be greater if the lump sum were discounted back for more periods.
D)The present value of the $1,000 would be smaller if interest were compounded monthly rather than semiannually.
E)The PV of the $1,000 lump sum has a higher present value than the PV of a 3-year, $333.33 ordinary annuity.

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The Answer of U)S.Treasury bond will pay a lump sum of $1,000 exactly 3 years from today.The nominal interest rate is 6%, semiannual compounding.Which of the following statements is CORRECT?
A)The periodic interest rate is greater than 3%.
B)The periodic rate is less than 3%.
C)The present value would be greater if the lump sum were discounted back for more periods.
D)The present value of the $1,000 would be smaller if interest were compounded monthly rather than semiannually.
E)The PV of the $1,000 lump sum has a higher present value than the PV of a 3-year, $333.33 ordinary annuity.

U)STreasury Bond Will Pay a Lump Sum of $1,000 Exactly