1. Present value for a cash flow stream of $300 per year for 5 years at 3.5% is $ 1354.52 True or False 2. If an additional $1,200,000 in income is earned and the marginal tax is 34% an additional $340,000 in taxes will be paid. True or False 3. The present value of $50,000 to be received 10 years from now at 8.5% interest is about $22,114. True or False 4. Risk return theory states that the higher the risk, the higher the required return. True or False 5. If a $1000 par bond is purchased for $960, has 8 years to maturity, a 5.5% coupon rate, the YTM is 6.15%