Interest earned on zero-coupon bonds is tax free

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Reference no: EM131980800

1. Privatization involves the public placement of state-owned businesses.

A) True

B) False

2. When yield to maturities are less than coupon rates, bond prices will fall below face value.

A) True

B) False

3. Refunding is more likely to take place when intrerest rates rise rather than fall.

A) True

B) False

4. Interest earned on zero-coupon bonds is tax free.

A) True

B) False

5. Bankrupt firms have a negative net worth.

A) True

B) False

Reference no: EM131980800

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