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If the Rate of Interest That Investors Can Earn on a 2-Year

Question 31

Multiple Choice

If the rate of interest that investors can earn on a 2-year investment is zero then


A) you will repay the same amount of money at the conclusion of a loan that you borrowed at the beginning of the 2 year loan.
B) the "cost" of using money for 2 years is zero.
C) you will receive the same amount of money at maturity that you invested at the beginning of a 2 year investment.
D) all of the above.

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