Question #1 (1 point) Consider a $1000 par value bond w

Question #1 (1 point)
Consider a $1000 par value bond with 8 years until maturity that has an $80 coupon payment and is currently selling for $1050. Which of the following statements is not true?
The current yield is greater than its yield to maturity.
The coupon rate is greater than its yield to maturity.
The current yield is greater than the coupon rate.
All of the above statements are true
Question #2 (1 point)
Which of the following is not a type of corporate security?
common stock
preferred stock
corporate bonds
municipal securities
Question #3 (1 point)
The provisions of a lease obligation may be substantially more restrictive than those of a bond indenture.
True
False
Question #4 (1 point)
The fact that interest and principal payment obligations are set by contract and must be met regardless of the economic position of the firm is considered a benefit of debt.
False
True
Question #5 (1 point)
Over the past twenty years corporations have relied more on external funds when compared to internal funds as a source of financing.
True
False
Question #6 (1 point)
The weak form of the efficient market hypothesis states that all information both private and public is immediately reflected in stock prices.
False
True
Question #7 (1 point)
According to the Statement of Financial Accounting Standards No. 13 certain types of leases must be shown as long-term obligations on the financial statements of the firm.
True
False
Question #8 (1 point)
What type of bond pays no interest and instead sells at a deep discount from face value?
zero-coupon rate bond
floating rate bond
junk bond
all of the above
Question #9 (1 point)
The short-term markets that comprise securities with maturities of one year or less are referred to capital markets.
True
False
Question #10 (1 point)
In a three-sector economy the major supplier of funds for investment is the government sector
True
False
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