(V) True or False: The change-of-payment method must be used to convert a general annuity into an equivalent simple annuity when simple interest is charged over a fraction of a period and the payment period is longer than the interest compounding period.

(VI) True or False: If a company wins a hugely profitable contract, then the yield on the companys bonds will fall.

(VII) An investor buys a callable bond. True or False: If the yield on the bond decreases, then the investor will call the bond in and make a profit.

(VIII) True or False: Irrespective of whether a bond is bought at a discount, at par, or at a premium, if that bond is held until maturity then the bondholder will earn a positive return on their invest- ment.

(IX) True or False: If the yield on a bond is lower than the bonds coupon rate, then the bond is trading at a premium