1. Which of the following statements is true of a project with a positive net present value (NPV)?

a. ?The project's internal rate of return is less than the expected rate of return.

b. ?The project has multiple internal rates of return.

c. ?The project's terminal value is less than the future value of the initial investment in the project.

d. ?The project's initial investment is recovered on a present value basis prior to the end of the project's useful life.

e. ?The present value of project's cash inflows and multiple cash outflows discounted at internal rate of return are equal.

2. ?If a bond's yield to maturity exceeds its coupon rate, the bond's:

a. ?current yield is equal to the coupon rate.

b. ?price must be less than its par value.

c. maturity value is more than its face value.?

d. current yield is equal to the capital gain on the maturity of the bond.?

e. ?maturity value is less than the bond's market value.