True and False

1. To construct the yield curve, the U.S. Corporate bonds are ideal because they are all free of default risk.

2. If a bond pays coupons twice per year, we must adjust the required return multiplying with 2, and dividing the number of years by 2.

3. In Excel, if you want to see the actual serial number for a date, you can use the General number format.

4. As long as sales are increasing, a high DOL is desirable, but if sales begin to decline, a high DOL will result in EBIT declining at an even faster pace than sales.