1. Geo Ltd. now is preparing a bond offering with an 8% coupon rate. The bonds will be repaid in 10 years. The company plans to issue the bonds at par value. Which of the following statements are correct? 1. Each interest payment per bond will be $80. II. The yield to maturity when the bonds are first issued is 8%. A. I only B. I only C. I and II D. Neither 2. is a measure of the systematic risk of a security or a portfolio in comparison to the market as a whole. A. Beta B. Standard deviation C. Coefficient of variation D. Expected retum 3. The describes the relationship between an individual security's returns and its market risk. The slope of this line is A. security market line; beta B. characteristic line; beta C. security market line market risk premium. D. characteristic line; market risk premium. Business School, UIBE 4. Which of the following techniques may not consider all cash flows of a project? A. Net present value B. Internal rate of return B. Profitability Index D. Payback period 5. Which of the following will cause the breakeven point increase? A. increase in price B. increase in fixed cost C. increase in sales D. decrease in variable cost