1.A. A bond that was issued one year ago and has 8 more years until maturity, a yield to maturity (YTM) of 7.80%, and a price of $943.23. The bonds par value of $1,000 is returned at maturity. Which of the following is true of the coupon rate of this bond?

		The coupon rate is below the YTM because the bonds price is below the par value.
		The coupon rate, defined by the bond price divided by the par value, is 92.20%.
		The coupon rate equals the YTM because the bonds price is below the par value.
		The coupon rate is above the YTM because the bonds price is below the par value.
		The coupon rate, defined as the YTM times the price, must be 7.80%.

B. NPV analysis is the model of choice for many reasons, but does suffer from which of the following shortcomings?

		The inability to incorporate the time value of money into decisions
		The inability to incorporate new information once the project is underway
		The chance that the rule will produce two NPVs for the same project, both satisfying the definition of NPV
		The fact that the decision rule changes for non-standard projects
		The inability to rank mutually exclusive projects correctly