Which of the following is false regarding the price a bond?

Multiple Choice

• All else the same, bonds with larger coupon payments will have a higher price today.

• The lower the discount rate, the more valuable the coupon payments are today.

• When market interest rates rise, bond prices will fall, all else the same.

• Bonds with high coupon payments are generally (all else the same) more sensitive to changes in interest rates than bonds with lower coupon payments.

• Bonds with long maturities are generally (all else the same) more sensitive to changes in interest rates than bonds with shorter maturities