1. A 10,000, 8 percent coupon bond that sells for $10,000 has a yield to maturity of A) 8 percent. B) 10 percent. C) 12 percent. D) 14 percent.

2.. Fraudulent Co. is comparing their financial statements from last year with this year to see the impact of Net-working-capital (NWC) to this year's Free Cash Flows (FCF). Last year the company showed $2500 in cash, $3000 in inventories, $2000 in accounts receivable, $1000 in depreciation and $3500 in accounts payable. This year, they show $1500 in cash, $2500 in inventories, $2000 in accounts receivable, $500 in depreciation, and $2500 in accounts payable. What will be the net impact of these NW changes to the FC for this year? In other words, will NWC increase or decrease the FCF?