Question 10 1.5 pts When we earn interest on prior interest earnings it's known as "compounding". ements True False Hill ents Question 11 1.5 pts ns The farther a cash flow is in the future, the less is the present value today. O True False Video Question 12 1.5 pts The interest rate used to find the present value of a future cash flow is called: O Equivalent rate Prime rate Simple rate Discount rate Breakeven rate Question 7 1.5 pts When the yield-to-maturity on a bond declines its price increases. ements True O False Hill ents Question 8 1.5 pts ns When the Yield to Maturity on a bond is less than the Coupon Rate, the bond sells for less than its face value (at a discount). O True Video O False U Question 9 1.5 pts For two bonds with the same risk and Yield to Maturity, the one with the lower Coupon Rate will sell for the higher price. O True O False