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Question 3 To find the future value of a stream of cash flows you just calculate the future value of each flow and then add t
Question 7 A decline in the interest rate decreases the present value of those payments and the price of bonds. Trun
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Answer #1

3.

True

because to get combined future value, you need to just add up the future value of individual cash flow.

4.

False

because lower interest rates reduced discounted rate resulting in higher price of the bond

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