1. True or False: If a company improves its profitability, asset management, liquidity, and market value between two consecutive years, then its total debt to total capital must have gone down. 2. True or False: Suppose a 10-year bond is callable in 6 years while its coupon rate has continued to remain lower than the prevailing interest rate since its third year. The most likely maturity of this bond is 10 years. 3. True or False: The present value of $100 received every quarter and then placed into a bank account earning 1% per year compounded quarterly for a year while the prevailing interest rates are 5% annually is less than the present value of $400 received at year-end. 4. True or False: The most secure bonds have lower yields than those with a higher risk rating because investors demand a higher return for a higher risk at a lower price. 5. True or False: According to the corporate valuation model, the market value of a company equals the market value of its operations