1. If the nominal interest rates are the same, a more frequent compounding would give a higher effective interest rate.

True

False

1. The coupon rate for a specific issue of bonds, such as ATT's 7% bonds that were issued in 2015, does not vary over time. However, the required rate of return changes as economic factors change.

True

False

1. If ATT's 7% coupon bonds maturing in 2025 are selling for 103% of the par value, the yield to maturity of this issue must be higher than 7%.

True

False

1. Fundamental analysis is the research to forecast the movements in the prices of securities based on trends and patterns in past prices.

True

False

1. The efficient market hypothesis says that at any time the security price fully reflects all the information, so the price changes are not predictable.

True

False