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True or False and why ? F.The rate of return offered by a security is the interest rate that makes the present value of the

True or False and why ?

F.The rate of return offered by a security is the interest rate that makes the present value of the security's future cash flows equal to its selling price.

F. Coupon rates and payments are generally fixed throughout the life of a bond regardless of the economic or market conditions.

F. Registered bonds require that the names of owners be registered with a transfer agent. Bearer bonds belong to the person who possesses them.

F. Investors are given the option accepting calls on bonds with call features.

F. Bond ratings below Moody's Baa and S&P's BBB are considered of lower quality and risky.

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