All else constant, as the market price of a bond decreases the current yield _____ and the yield to maturity _____

Group of answer choices

increases; decreases

increases; increases

decreases; increases

remains constant; increases

decreases; decreases

When a bond's coupon rate is lower than its yield to maturity, the bond:

Group of answer choices

had to be recently issued.

Which one of the following indicates that a project should be accepted? Assume the cash flows are normal, i.e., the initial cash flow is negative.

Group of answer choices

Internal rate of return is lower than the required return

Average accounting return is lower than the given requirement

Negative net present value

Profitability index less than 1.0

Payback period that is shorter than the given requirement period

is priced at par.

is selling at a discount.

has reached its maturity date.

is selling at a premium.