& If we anticipate an increase of the interest rate in the next 6 months, we should buy bonds of which: 2) The coupon rate is high and maturity is close. b) The coupon rate is low and maturity is close. c) The coupon rate is high and maturity is fur. d) The coupon rate is low and maturity is fir 6 You just purchased a convertible bond. Today, the strictly debt value is inferior relative to the conversion value. If the required return on the bond increases a) The minimum price of the bond will decrease b) The minimum price of the bond will increase c) The minimum price of the bond remains the same. The strictly debt value of the bond will be superior to the conversion value. e) It is impossible to make that determination with this information. 7. Among following cash flows, which one (s) is (ure) not relevant to the calculus of NPV? 1. The salvage value of the equipment. 2. The tax savings related to the depreciation. 3. The variations of supplier account. 4. The dividends paid to the shareholders. a. 2 and 4 only b. 4 only c. 2 and 3 only d. 1 and 2 only 8. Your banker offers a nominal interest rate of 14% compound semi-annually. The effective-quarterly rate will be: a a. b. C. d. 3.2343% 3.1115% 3.3344% 3.4408% 9. Your banker offers a nominal interest rate of 18% compound monthly. The effective semi-annual rate will be 9.34433% b. 9.44453% c. 9.56746% d. 9.23545% 10. Your banker offers a nominal interest rate of 12% compound quarterly. The effective-weekly rate will be: a. 0.21454% b. 0.22763% c. 0.23546% d. 0.21163% 1. Among the following statements which one is false? a. When the NPV of a project is negative, the IRR is most likely to be superior to the required return. b. When the NPV of a project is positive, the PI is necessarily superior to 1. c. When the NPV of a project is negative, the PI is necessarily inferior to 1. d. When the NPV of a project is negative, the IRR is most likely to be inferior to the required return