1. Suppose a five-year,$1,000 bond with annual coupons has a price of $901.51 and a yield to maturity of 6.4%.What is the bond's coupon? rate?
The payback period considers all project cash flows
True or False
Explain
2. The dividend discount model indicates that the value of a stock is the present value of the dividends it will pay over the investor's horizon, plus the present value of the expected stock price at the end of that horizon
True or False
3. Unlike using IRR, selecting projects according to their NPV will always lead to a correct accept-reject decision.
True or False
Explain