PART e/False Answer all 10 questions (total 18 points). Mark your answer on the ScanTron as either True (A) or False (8) 35 Starting to invest earty for retirement increases the benefits of compound interest. True False The price sensitivity of a bond (how much it thuctuates in price) to a given change in nterest rates is generally loweror less volatilewhen the bond's remaining time until maturity is longer 36 True False a. "unk bonds" are high-risk, high-yield debt instruments. They are often used to nance leveragedd buyouts and mergers, and to provide financing to companies of questionable financial strength. 37 True False Ifa bank compounds the interest income that you earn on a savings account on a quarterty basis, the nominal rate will exceed the effective annual rate. 38 True False The cash flows associated with equity investing are typically more difficult to forecast than the coupons earned on bonds, because common stocks have a residual claim against the income and assets of a company, versus the contractual obligation of payments for a bond. 39 True False The total payment made each period on an amortized loan is constant, and it consists of some interest and some principal repayment. The closer we are to the end of the loan's life, the greater the percentage of the payment that will be a repayment of principal. True False wersification will normally increase the riskiness of a portfolio of just five- to- ten Brent common stocks. True False