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All else constant, as the market price of a bond decreases the current yield _____ and the yield to maturity _____
Group of answer choices
increases; decreases
increases; increases
decreases; increases
remains constant; increases
decreases; decreases
When a bond's coupon rate is lower than its yield to maturity, the bond:
Group of answer choices
had to be recently issued.
Which one of the following indicates that a project should be accepted? Assume the cash flows are normal, i.e., the initial cash flow is negative.
Group of answer choices
Internal rate of return is lower than the required return
Average accounting return is lower than the given requirement
Negative net present value
Profitability index less than 1.0
Payback period that is shorter than the given requirement period
is priced at par.
is selling at a discount.
has reached its maturity date.
is selling at a premium.
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