1. Normally, the YTM on long -term bonds is less than the YTM on short- term bonds.
a) True
b) False
2. Bond Coupon Payments are equal to (face value x coupon rate)/ payments per year.
a) True
b) False
3. A zero-coupon bond is a bond that pays no interest and initially sellsforparvalue.
a) True
b) False
3. A debenture is a bond that is collateralized.
a) True
b) False
4. A cost that has been incurred and can’t be recovered is nonetheless included in a capitalbudgeting analysis if it exists.
a) True
b) False