Which of the Following Statements Is FALSE

question 65

Multiple Choice

Which of the following statements is FALSE?

• A)The yield curve changes over time.
• B)The formulas for computing present values of annuities and perpetuities cannot be used in situations in which cash flows need to be discounted at different rates.
• C)We can use the term structure to compute the present and future values of a risk-free cash flow over different investment horizons.
• D)The yield curve tends to be inverted as the economy comes out of a recession.

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