Question 12 1 pts Which of the following statement is incorrect? As interest rates fall, the prices of bonds increase. The largest investors in corporate bonds are individual investors. Most of the answers are correct except one. The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond. Whenever a bond's coupon rate is higher than the market rate of interest, the bond will sell at a premium. Question 13 1 pts Which of the following statement is incorrect? Most of the answers are correct except one. A call provision gives the firm issuing the bonds the option to purchase the bond from an investor at a predetermined price called as the call price. Corporate bonds are long-term IoUs that represent claims against a firm's assets. Convertible bonds can be converted into shares of preferred stock at twice of the ratio at the discretion of the common stockholders, Whenever a bond's coupon rate is lower than the market rate of interest on similar bonds, the bond will sell at a discount, and such bonds are called discount bonds