Which of the following is FALSE? A. Zero coupon bonds pay no coupons at all, but are offered at a substantial discount below their par values and hence provide capital appreciation rather than interest income. B. The price of a bond moves in the opposite direction from interest rates; for example, if interest rates rise, bond prices on the secondary market will fall. C. If a company's bonds are selling at a premium, then the YTC is probably the expected return for the investor. D. When ka equals a fixed-rate bond's coupon rate, that bond's current value is equal to par regardless of years to maturity remaining. E For bonds, price sensitivity to a given change in interest rates generally increases as years remaining to maturity decreases.

Which of the following is FALSE? A. Zero coupon bonds pay no coupons at all, but are offered at a substantial discount below their par values and hence provide capital appreciation rather than interest income. B. The price of a bond moves in the opposite direction from interest rates; for example, if interest rates rise, bond prices on the secondary market will fall. C. If a company's bonds are selling at a premium, then the YTC is probably the expected return for the investor. D. When kd equals a fixed-rate bond's coupon rate, that bond's current value is equal to par regardless of years to maturity remaining. Ehfor bonds, price sensitivity to a given change in interest rates generally increases as years remaining to maturity decreases