True or False:

1. if a corporation issues a callable bond it may decide to call it's bond if interest rates are lower by the call date.

2. a zero coupon bond does not pay interest to the bond owner.

3. an investor in a common stock requires a higher return than aan investor in a bond for the same company.

4. bond prices and yields are inversely related. when a bonds price falls, the yield will rise.

5. if a bond is selling at a discount, that is at under $1000, it must have a positive capital gains yield.

6. most bonds originated in the U.S. pay interest semi-annually, that is twice a year.

7. preferred stock has one vote per share.

8. preferred stock dividends increase annually at the discretion of the Board of Directors.

9. The required return to an investor on preferred stock is higher than the required return on common stock

10. the beta is a measure of risk. the lower the risk the lower the beta.