Zero coupon bonds sell at a discount to their face value prior to their maturity.

True

False

Question 2	2 points	Save
The present value of a single future sum of money is inversely related to both the number of years until payment is received and the discount rate.
True False

Question 3	2 points	Save
The security market line reflects an individual investor's attitude toward risk.
True False

Question 4	2 points	Save
The formula for compound future value is:
FVn= PV(1+i)n FVn= (1+i)/PV FVn= PV/(1+i)n FVn= PV(1+i)-n

Question 5	2 points	Save
iSaga, whose common stock is currently selling for $12 per share, is expected to pay a $1.80 dividend, and sell for $14.40 one year from now. What are the dividend yield, growth rate, and total rate of return, respectively?
15% 20% 35% 10% 5% 15% 15% 12% 27% 20% 15% 35%

Question 6	2 points	Save
A security with a beta of one has a required rate of return equal to the overall market rate of return.
True False