State whether each of the following statements is true or false. 1. Convertible bonds are also known as callable bonds. select true or false 2. The market rate is the rate investors demand for loaning funds. select true or false 3. Annual interest payments on bonds are equal to the face value times the stated rate. select true or false 4. The present value of a bond is the value at which it should sell in the market.

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.