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Which of the following statements about bonds is false? A. Contract interest rates on bonds do not fluctuate over the life of the bonds. B.

Which of the following statements about bonds is false?

A. Contract interest rates on bonds do not fluctuate over the life of the bonds.

B. The maturity value of a bond is equal to the sum of principal and interest.

C. Investors "buy" the accrued interest as of the date of purchase.

D. Amortization of bond premium decreases interest expense over the life of a bond.

E. None of these

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