It Is Always Better to Choose a Lump Sum Rather

question 109

True/False

It is always better to choose a lump sum rather than to choose periodic payments over time. This is why nearly all lottery winners choose the lump-sum payment.

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Definitions:

Semi-Annual Coupon

A bond or fixed-income security that pays interest to its holder twice a year.

Yield To Maturity

The total return expected on a bond if held until the end of its lifetime.