1. ( T or F ) When a perpetual bond sells at a premium, the discount rate of the bond exceeds its coupon rate.

2. ( T or F ) Normally, investors had better sell bonds when interest rates are relatively high.

3. ( T or F ) One of the potential benefits of investing early for retirement is that an investor can receive greater benefits from the compounding of interest.

4. ( T or F ) If two bonds have the same price, you should always expect their coupon rates are the same.

5. ( T or F ) Other things being the same, the higher the risk of a stock, the higher the price of the stock.