The cost of debt increases relative to the investor's required ...

[Chloeellawright]

The cost of debt increases relative to the investor's required return due to flotation costs, but
  decreases relative to the investor's required return due to the tax deductibility of interest.
 
  Indicate whether the statement is true or false

Question 2

As market rates of interest rise, investors move their funds into bonds, thus increasing their price
  and lowering their yield.
 
  Indicate whether the statement is true or false

[Beatricemm]

Answer to Question 1

TRUE

Answer to Question 2

FALSE