Which of the following statements does/do not state a relationship correctly?

I. Time and present value are positely related, all else held constant.

II. Time and present values are negative related, all else held constant.

III. Future value and present value are positively related, all else held constant.

IV. An increase in the discount rate decreases the present value, given positive rates.

V. Time does not have an effect on the future value no matter what the interest rate is.

III and IV only

IV and V only

II and IV only

I and V only

I, III and V only

Which of the accounts listed below is/are associated with working capital management?

I. fixed assets

II. common stock

III. long-term debt

IV. accounts payable

Depreciation:

I. is a non-cash expense.

II. increases the costs of a firm.

III. decreases net operating cash flow.

IV. increase the net fixed assets as shown on the balance sheet.

For a par bond, you will find its

I. market price = call price

II. market price < face value

III. coupon rate = yield-to-maturity

IV. current yield = yield-to-maturity

A/An ______________ will result in a decrease in the price sensitivity of a bond to changes in interest rates.

I. increase in coupon rate

II. decrease in coupon rate

III. increase in time to maturity

IV. decrease in time to maturity