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Annuity A has the same n and i as Annuity
B. A's PMT is double B's PMT. Will A's present value be (pick one): (i) double, (ii) more than double, or (iii) less than double the amount of B's present value? Give the reason for your choice.
Issuance
The process of distributing something, especially financial instruments like stocks or bonds, to investors.
Semiannually
Taking place twice within a year or every half year.
Effective Interest Method
An accounting technique for calculating interest expense on bonds that amortizes discount or premium over the life of the bonds.
Straight-line Method
A depreciation technique that allocates an equal portion of the value of an asset over its useful life, used to gradually reduce the asset's book value.
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