Question: TRUE/FALSE ( WITH EXPLINATION) 1 . Determining the market price of a financial asset depends principally on identifying the future cash flows associated with its

TRUE/FALSE ( WITH EXPLINATION)

1. Determining the market price of a financial asset depends principally on identifying the future cash flows associated with its ownership.

2 A bond's yield and coupon rate vary over time depending on market and economic conditions.

3. A bond selling at par will have a yield to maturity equal to its current yield.

4. Convertible bonds allow the issuing company to convert outstanding bonds to shares of common stock when the company deems necessary.

5 When a call protection provision is written into the bond indenture, the issuing company is prevented from calling the bond throughout the bond's life.

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