1- T/F if economic risk is increasing and spreads are widening he should be willing to pay more for his corporate bonds. 2-T/F If the GDP is growing, chances are that credit spreads will contract causing U.S. T-notes to rise 3- T/F If the economy is contracting, corporate bonds will go up from a fall in credit spreads. 4-T/F If I have a standard deviation of 10 and a return of 8% , then 95% of the time I should lose no more than 2 % 5-T/F Essentially, the whole idea of valuing stocks and bonds and deciding| whether or not to accept or reject capital investments (machines, a truck fleet, etc.) is to compute the present value of the cash flows