1. Zero coupon bonds are usually sold at a premium of par value.

Select one:

True

False

2.The equivalent annual cost rules is better than other capital budgeting rules in choosing among mutually exclusive projects with unequal lives.

Select one:

True

False

3 A 10-year annual coupon bond has a coupon rate of 5%. What is the price of the bond if the market interest rate is 5.5%?

Select one:

a. $962.31

b. $1,500

c. $386.09

d. $1,000

4.Two years ago, you bought a 10-year bond with semi-annual coupon payments, which currently is selling at $1,050. What is the annual coupon payment if the yield to maturity is 6%?

Select one:

a. $60

b. $67.96

c. None of THESE

d. $64.94

e. $33.98