1. The yield to maturity on a bond is always equal to the interest (coupon) payment of a bond.

True or false?

2. When determining the price of a bond using present value tables, we always use the Coupon Rate as opposed to the Yield to Maturity as an interest rate factor in our time vale of money calculations. .

True or false?

3. Although the after-tax cost of debt is below the cost of equity, firms cannot increase their use of debt without limit.

True or false?