1. True or False. The amount of interest in each amortized loan payment is the same in every payment over the life of the loan. a. A) Coupon Rate > Yield b. B) Coupon Rate &l…

Question

1. True or False. The amount of interest in each amortized loan payment is the same in every payment over the life of the loan.

a. A) Coupon Rate > Yield
b. B) Coupon Rate < Yield
c. C) Coupon Rate = Yield

Answer 1

The amount of interest in each amortized loan payment is not the same over the life of the loan.

Step-by-step explanation:

The statement "The amount of interest in each amortized loan payment is the same in every payment over the life of the loan" is False. In an amortized loan, the interest component of each payment decreases over time, while the principal component increases. This means that the amount of interest paid in each payment will be different throughout the life of the loan.