Identify the following general statements concerning bonds as True or False:

8. Bonds provide tax benefits to issuers of bonds.

9. The risk of company insolvency increases when a firm issues bonds.

10. Municipal bonds pay interest that is federally and state tax-free.

11. All else constant, a bond will sell at a discount when its coupon rate is less than its yield to maturity.

12. Decreasing the time to maturity increases the price of a discount bond, all else unchanged.