Question 2 Which of the following statements is FALSE? A. Other things being equal, a bond with a higher coupon rate is more sensitive to interest rate changes. B. Other things being equal, a bond with a longer maturity is more sensitive to interest rate changes. C. A bond's value is inversely related to its yield-to-maturity. D. A bond is valued at par if its coupon rate and yield-to-maturity are equal. E. A bond is valued at discount if its coupon rate is less than yield-to-maturity Question 3 The internal rate of return is: A. the discount rate that makes the net present value of a project equal to the initial cash outlay. B. equivalent to the discount rate that makes the net present value equal to one. C. tedious to compute without the use of either a financial calculator or a computer. D. highly dependent upon the current interest rates offered in the marketplace. E. a better methodology than net present value when dealing with unconventional cash flows