$1.$ Which of the following factors will change when interest rates change?

A$.$ The expected cash flows from a bond

B$.$ The present value of a bond's payments

C$.$ The coupon payment of a bond

D$.$ The maturity value of a bond

$2.$ Firms that make investment decisions based upon the payback rule may be biased toward rejecting projects:

A$.$ with short lives.

B$.$ with long lives.

C$.$ with early cash inflows.

D$.$ that have negative NPVs$.$

$3.$ The discount rate that makes the present value of a bond's payments equal to its price is termed the:

A$.$ rate of return

B$.$ yield to maturity

C$.$ current yield

D$.$ coupon rate

$4.$ Among mutually exclusive projects, one should always select the project with the higher IRR. True$/$False$.$ Draw a diagram and briefly explain.

$5.$ If the dividend yield for year one is expected to be $5\%$ based on the current price of $$25,$ what will the year four dividend be if dividends grow at a constant $6\%?$

A$.$ $$1\mathrm{.}33$

B$.$ $$1\mathrm{.}49$

C$.$ $$1\mathrm{.}58$

D$.$ $$1\mathrm{.}67$

C$.$ None of the above