Question: TRUE OR FALSE 1. Victoria's Piano Manufacturing Company, Inc. has an outstanding consul bond with a 5% coupon rate and face value of $1,000. If

TRUE OR FALSE

1. Victoria's Piano Manufacturing Company, Inc. has an outstanding consul bond with a 5% coupon rate and face value of $1,000. If the bond is priced to provide an 8% required rate of return, the price of the bond can be determined as $6.25.

2. Participating preferred stock provides the benefit of participating in the residual income of the user usually reserved for common stock investors only.

3. A registered bond may also be called a coupon bond.

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