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Simple interest is charged on bank bills while compound interest is applied on bonds. Prices of longer maturity bonds are more sensitive to interest rate

Simple interest is charged on bank bills while compound interest is applied on bonds.

Prices of longer maturity bonds are more sensitive to interest rate changes.

If XYZ Corp's $1,000 8% bond with 10 years to maturity is selling at $960, the yield is less than 8%.

A bond with a coupon rate of 10% and yield of 12% will sell at a discount.

which is wrong?

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