To answer questions, assume All else equal

6. An increase in the interest rate on a mortgage will cause an increase/decrease/no change in the mortgage payment, all else equal.

7. If the payout ratio increases, then the stocks price will increase/decrease/not change.

8. If the price of a stock increases, the dividend yield will increase/decrease/not change.

9. If the yield on a bond decreases, the value of the bond should increase/decrease/not change.

10. A bond that has a coupon rate of 8% should have a higher/lower value than a bond that has a coupon rate of 6%.

11. If the risk-free rate increases, the required return on all stocks must increase/decrease/not change.

12. If the risk-free rate increases, the value of all stocks must increase/decrease/not change.