Which of the following is FALSE?

Question 12 options:

	The prices of long-term bonds are less sensitive to changes in market interest rates thanare those of short-term bonds, other things equal.
	The prices of zero-coupon bonds are more sensitive to changes in market interest rates than are those of high coupon bonds, other things equal.
	A premium bond is a bond for which the yield to maturity is less than the coupon rate.
	A discount bond is a bond for which the yield to maturity is greater than the coupon rate.
	Duration is a measure of the sensitivity of a bond's price to small changes in market interest rates.

A $1,000 par value bond has a 5.6% coupon rate with semi-annual interest payments. The bond has 25 years to maturity and the yield to maturity is 7.2%. What is the present value?

Question 13 options:

	$628.05
	$1,212.54
	$815.69
	$869.57
	$816.85