Stocks are a cheaper source of capital for corporations because they don't require fixed interest payments True False QUESTION 2 If you expect the yield curve to flatten, you should sell bonds with longer maturities to capture the capital gain. True False A portfolio consisting solely of bonds with a current yield of 5% or less can have a return greater than 5% at maturity True False QUESTION 4 In the normal course of business a bank can have more illiquid than liquid assets without causing alarm amongst investors. True False QUESTION 5 Other things being equal, an increase in asset value signals lower expected return. True False