An annuity Question 6 options:

is a debt instrument that pays no interest.

is a stream of payments that varies with current market interest.

is a level stream of equal payments through time.

has no value.

None of the above.

The correct answer is letter "C": is a level stream of equal payments through time.

Explanation:

Annuities are payments made at equal intervals that could be annual, quarterly, monthly, biweekly or daily. Annuities are defined as periodic and equal payments. There are five (5) types of annuities: fixed annuities, variable annuities, fixed-indexed annuities, immediate annuities, and deferred annuities.

is a level stream of equal payments through time.

true. The payments will remain at the same levle for the entire period of the annuity until maturity.

Explanation:

is a debt instrument that pays no interest.

FALSE the annuity does provide interest for each period when is prepared.

Has no value.

FALSE the annuity can be saled in the secondary market pretty much anitime.

is a stream of payments that varies with current market interest.

FALSE the payment will be the same regardless of the interest rate.