Finance test help needed

A.

If a coupon bond is selling at a premium, its current yield equals its yield to maturity.

B.

If a bond’s yield to maturity exceeds its annual coupon, then the bond will trade at a premium.

C.

If a coupon bond is selling at par, its current yield equals its yield to maturity.

D.

If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.

E.

If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.

2.Operating leases help to shift the risk of obsolescence from the user to the lessor.

;True

;False

3.Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process.

;True

;False

4.The “preferred” feature of preferred stock means that it normally will provide a higher expected return than will common stock.

;True

;False

5.If a firm’s goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders’ wealth.

;True

;False