1. If current interest rates are higher than a bond's coupon rate, owners can:
a. sell the bond at a premium, because investors are sensitive to price changes in bonds caused by increased interest rates.
b. hold the bond until maturity, at which point its market value will equal its face value.
c. a and c
d. sell the bond at a discount, because investors recognize that the lower the bond's price the higher is its yield.
2. A DECREASE in Cash Flow from Operations could be caused by:
a. a decrease in land.
b. an increase in inventory.
c. a decrease in accruals.
d. Both b and c
e. All of the above