Determine if these statements are true or false.

1. True or False: The YTM on a discount bond will be above its coupon rate.

2. True or False: Prior to maturity, discount bonds always sell for less than par value.

3. True or False: You can earn a higher return by purchasing zero-coupon bonds at a premium.

4.True or False: If you buy a bond at par and hold it to maturity, you will experience a capital gain.

5. True or False: If you purchase a $1,000 par value bond for $1,050 and hold it to maturity, you would experience a capital gain on the bond equal to 5-percent.

6. True or False: Capital losses always reduce the investors rate of return.

7. True or False: Ceteris paribus, bond prices move in the same direction as their coupon rates.

8. True or False: At maturity, investors must repay a bonds par value to the lender.

9. True or False: If you own long-term zero-coupon bonds, you would hope that interest rates would decrease.