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Which one of the following statements about perpetuities and annuities is FALSE?


The difference between an annuity and a perpetuity is that an annuity ends after a fixed number of payments.


An annuity is a stream of N equal cash flows paid at irregular intervals.


Most loans and most bonds are annuities.


A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.

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