true or false problems

________ 1.) Shorter duration bonds are more sensitive to interest rate changes.

________ 2.) Revenue bonds are less risky than general obligation bonds.

________ 3.) A companys book value can vary significantly from a companys market value.

________ 4.) Increasing profits, when cash flow from operations is decreasing, is a red flag.

________ 5.) When purchasing a bond, accrued interest must be paid to the bond purchaser.

________ 6.) The bond market is a centralized exchange for buying and selling bonds.

________ 7.) U.S. Treasuries can be purchased directly from the Federal Reserve bank.

________ 8.) A Tobins q value < 1.0 implies that the company is overvalued.

________ 9.) A companys annual report is also called the 10-Q.

________ 10.) A discount bond is a bond selling for more than its par value.

________ 11.) If a company has no debt, the return on assets will equal the return on equity.

________ 12.) When a company repurchases existing shares, cash levels are increased.

________ 13.) U.S. companies follow GAAP accounting standards.

________ 14.) High coupon, high priced bonds are likely candidates to be called.

________ 15.) Bond prices move in the same direction as interest rates.

________ 16.) Return on assets can be impacted by how assets are financed.

________ 17.) Bonds usually have less risk than stocks, but they still have some risk.

________ 18.) A lower debt-to-assets ratio implies more financial leverage, and more risk.

________ 19.) A weak bond market occurs when interest rates are rising.