True or false questions:

5- Decreasing in market interest rate will cause increasing in bond value.

6- Bond is selling at discount when coupon rate is less than market interest rate.

7- According to issuer of bond, bonds can be classified into subordinated and unsubordinated.

8- Euro bond is a type of foreign bonds.

9- Both common stock and preferred stock has the same growth rate.

10-Approximation method is more accurate than IRR in calculating YTM.

11- The main difference between the cost of common stock and the cost retained earnings is growth rate.

12- If expected EBIT is more than financial break-even point, its prefer to issuing bonds

13-Companys growth rate play an important role in calculating cost of bonds. 2

14- Market interest rate (discount rate) has no impact on the value of zero coupon rate.

15- According to Net Operating Income Approach (NOI approach) there is no optimal capital structure.