1. When you refer to a bond's coupon rate, you are referring to which one of the following? A. B. C. D. E. Difference between the purchase price and the face value Annual interest divided by risk free asset return Difference between the bid and ask price An rate at which you calculate interest payment Principal amount of the bond or 100% 2. universal Principle of financial asset valuation states that: F. G. H. The intrinsic value of a financial asset is equal to the future value of all historical free cash flows you expect to receive. The true value of a financial asset is equal to the sum of all historical and future free cash flows. The intrinsic value of a financial asset is equal to the present value of all future free cash flows you expect to receive. The fair value of a financial asset is equal to the market value of all future earnings you expect to receive. None of the above. I. J. 3. When a bond's yield to maturity (or market interest rate) is less than the bond's coupon rate, the bond: b had to be recently issued. is selling at a premium. has reached its maturity date. is priced at par. is selling at a discount. d. e