1-The yield to maturity will be greater than the coupon rate when a bond is selling at a premium.

Select one:

a. False

b. True

2-Which one of the following would have the greatest present value, assuming a positive discount rate?

Select one:

a. $1,000 today plus $400 a month for six months.

b. $1,000 today plus $200 a month for a year.

c. $1,000 today plus $100 a month for 2 years.

d. $2,200 today plus $200 a month for six months.

e. $2,200 today plus $100 a month for a year.