True or False

________ 16.) Capital-intensive firms tend to have a high return on assets.

________ 17.) When purchasing a bond, accrued interest must be paid to the bond purchaser.

________ 18.) 100 basis points is equivalent to 1%.

________ 19.) Unlike stocks, bonds do not have risk, but instead have a guaranteed coupon.

________ 20.) When comparing both short- and long-duration bonds, short-duration bonds suffer

the most in an environment of rising interest rates.