Question $6(10$ pts$)$ True or False?

For the $20\%$ tax bracket, the equivalent after$-$tax rate of an $8\%$ corporate bond yield is

$10\%.$

Relative to investment$-$grade bonds, junk bonds have a lower level of perceived default

risk and lower yield.

On a fixed$-$rate amortized mortgage, a large portion of the mortgage payment goes towards

the principal repayment during the early life of a mortgage loan.

Dual class stock refers to firms with both common and preferred stock outstanding.