A. What does it mean when someones says The stock market is efficient? What are the implications for investing in the stock market?

T/F for the following questions:

________ 1. If the yield to maturity is greater than the coupon rate, the price of the bond is greater than the par value.

________ 2. All else equal, interest rate risk is higher for bonds that have longer yield to maturity

________ 3. IRR is a good decision rule to use because for every project there is only one IRR.

________ 4. Unsystematic risk can be eliminated by diversifying.

________ 5. A market is efficient if it incorporates all available information