1. Victoria's Piano manufacturing Company, Inc. has an outstandings consul bond with 5% coupon rate and face value of $1,000. If the bond is priced to provide an 8% required rate of return, the price of the bond can be determined as $625. True or False

2. Rafe, Inc. has a coeffieicient of variation equal to .6 while Rache, Inc. has a coefficient of variation of .9. On a relative return and risk basis, therefore, Rafe is less risky than Rache.