1. If the yield-to-maturity of a bond is less than the coupon rate, the bond will sell at: (A) a discount (B) a premium (C) par value (D) its call price

2. A zero-coupon bond will have a price: (A) equal to par (B) less than par (C) greater than par (D) equal to the market rate

3. A firm's before tax cost of debt on any new issue is 9%; the cost to issue new preferred stock is 10%. Can this pricing exist? (A) Yes (B) No (C) Not enough information