2. Normally, the YTM on long -term bonds is less than the YTM on short- term bonds.

a) True

b) False

9. Bond Coupon Payments are equal to (face value x coupon rate)/ payments per year.

a)True

b)False

10. A zero-coupon bond is a bond that pays no interest and initially sellsforparvalue.

a)True

b)False

18. A debenture is a bond that is collateralized.

a)True

b)False

24. A cost that has been incurred and cant be recovered is nonetheless included in a capitalbudgeting analysis if it exists.

a)True

b)False