True or False. Please give explanation as to why.

1. If a bond has a coupon rate of 6% and the yield to maturity is 4%, the bond will sell at a discount over its face value (that is, the price will be less than its face value).

2. A companys hurdle rate may be set higher than its WACC if the company needs to invest in projects that are legally required but have no economic return (that is, no return on investment or IRR).

2.