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True or False? If false, please explain. 1) The yield to maturity (YTM) is the...

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Accounting

True or False? If false, please explain. 1) The yield to maturity (YTM) is the discount rate used to calculate the fundamental value of a bond. (0.5 Mark) 2) An annuity provides a stream of cash flows for a defined period of time, while an annuity-due provides a stream of cash flows that lasts forever. (0.5 Mark) 3) If a bonds coupon rate is higher than the discount rate then the bond is expected to trade at a premium to its face value. (0.5 Mark) 4) In general, Bond prices have an inverse relationship with interest rates; that is, when interest rates rise, bond prices fall. (0.5 Mark)

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