1. Which of the following statements is NOT true?
   1. There is an inverse relationship between bond yields and bond prices.
   2. At zero yield, there are no time-related adjustments to the future cash flow and the bond price is the sum of its cash flows.
   3. When the yield is the same as the coupon rate, the bond price is different to its face value.
   4. The higher the yield, the lower the price of the bond.

Answer:______

1. .

1. Which of the following statements is NOT true?
   1. A bonds yield to maturity is the IRR of the bond investment.
   2. It is possible to find the yield of a bond when its price is known, but not to find the price of a bond if its yield is known.
   3. A bonds NPV calculated at its market yield is zero.
   4. Buying a bond at its market price is a zero NPV investment.

Answer:______

1. Which of the following is NOT true?
   1. Bond prices are usually quoted as a percentage of face value.
   2. Bonds usually pay its coupon quarterly.
   3. The annualized yield is called bond equivalent yield.
   4. Bonds can be zero-coupon bonds as well as perpetual bonds.

Answer:______