Western Bank pays 5% compounding interest on its savings account balances, whereas Eastern Bank pays 5.5% simple interest. If you deposited $8,000 in each bank, you will earn more from the Western Bank account at the beginning of the fifth year.

true/false

All else held constant, the after-tax cost of debt will decrease if the firm issues the bond at a lower price.

true/false

All else held constant, the bond price will decrease if you decrease the coupon rate.

true/false