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

question 100

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.