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Author Question: Bond A has a current yield of 6 and Bond B has a current yield of 8. If the market price of both ... (Read 52 times)

geodog55

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on: Jul 10, 2018
Bond A has a current yield of 6 and Bond B has a current yield of 8. If the market price of both
  bonds is the same, then the yield to maturity on Bond B must be higher than the yield to maturity
  on Bond A.
 
  Indicate whether the statement is true or false

Question 2

Incremental cash flows refer to
 
  A) the new cash flows that will be generated if a project is undertaken.
  B) the cash flows that are foregone if a firm does not undertake a project.
  C) the cash flows of a project, minus financing costs.
  D) the difference between after-tax cash flows and before-tax accounting profits.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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yotaSR5

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Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

A


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