True/False 1. Compounding is the process of converting today's values, which are termed present value, to future value 2. An amortized loan is a loan that requires equal payments over its life; its payments include both interest and repayment of the debt. 3. Bond ratings are assigned based upon a company's call provision 4. Because junk bonds are such high-risk instruments, the returns on such bonds aren't very high and the existence of this market detracts from social welfare. 5. A high-growth stock will give large dividends to its investors. 6. Common stock and bonds represent a contract to make interest and principal payments to its stockholders. 7. Common stockholders elect the firms directors and managers. 8. A proxy fight is an attempt by a group to gain control of a firm by convincing its stockholders to give the group the authority to vote their shares in order to elect a new management team