1)Which of the following is NOT true regarding bonds?
Group of answer choices
A)If a bond is selling at a discount, then the current yield is greater than the yield-to-maturity.
B)An increase in market interest rates leads to a decrease in
C)If the coupon rate on a bond is lower than the yield-to-maturity, the bond sells at a discount.
D)If the coupon rate on a bond equals the yield-to-maturity, then the bond sells at par.
2)When calculating free cash flows, which of the following statements is NOT true regarding the
Group of answer choices
A)As an accrual, depreciation does not factor into
B)Depreciation is an accrual, not a cash flow.
C)Depreciation create a tax shield.
D)Depreciation is first removed and the subsequently added back in when calculating free cash flows.
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