7. Indicate whether each of the following is TRUE or FALSE. A discount bond has a coupon rate higher than the bond's required return (YTM). If interest rates increase, a bond's expected price intrinsic value) decreases. The lower the credit rating of a bond, the higher the risk, and therefore, the higher the coupon rate. Beta is a measure of diversifiable risk. Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, diversifiable risk declines