If a bond sells for its par value, the coupon interest rate and yield to maturit

Question

If a bond sells for its par value, the coupon interest rate and yield to maturity are equal.

Select one:

True

False

The expected rate of return from an investment is equal to the expected cash flows divided by the initial investment.

Select one:

True

False

The most relevant form of growth for valuing a firm's common stock is internal growth.

Select one:

True

False

The par value of a corporate bond indicates the payment that the issuer promises to make to the bondholder at maturity.

Select one:

True

False

The required rate of return for an asset is equal to the risk-free rate plus a risk premium.

Select one:

True

False

The yield to maturity is the discount rate that equates the present value of the interest and principal payments with the current market price of the bond.

Select one:

True

False

Total risk equals systematic risk plus unsystematic risk.

Select one:

True

False

Variation in the rate of return of an investment is a measure of the riskiness of that investment.

Select one:

True

False

Explanation / Answer

1) True

2) True

3)True

4)True

5) True

6)True

7)True

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