1. The required return to bondholders would be (higher/lower) than the cost of the debt to the company issued bonds. 2. If a bond sells at a discount, Po would be (lower/higher) than par value and the coupon rate would be (lower/higher) than YTM. (Po represents the price of a bond and YTM is the bond's yield to maturity.) 3. A decrease in the corporate tax rate would cause firms to (increase/decrease) the level of financial leverage. 4. If NPV of the project is greater than zero, PI should be (lower/higher) than 1, and IRR should be (lower/higher) than cost of capital. 5. Debt would have the (same /different) effect on the value of the firm