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Assuming the current economy is normal and the face value of a bond is $ 1 , 0 0 0 , which one of the

Assuming the current economy is normal and the face value of a bond is $1,000, which one of the following is incorrect about the market price of a bond, face value, coupon rate, and YTM? A. If the current price of a bond is $1,108, the coupon rate is higher than the YTM. B. If YTM is the same with the coupon rate, we say the bond trades at par. C. A zero coupon bonds always trade at par. D. The coupon rate is always lower than the YTM when the current bond price is less than its face value. E. As interest rates in the economy fluctuate, the bond yields that investors demand will also change.

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