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Which of the following statements are false? (there may be more than one) 1. The debenture is the written agreement between the corporation (borrower) and
Which of the following statements are false? (there may be more than one)
1. The debenture is the written agreement between the corporation (borrower) and its creditors.
2. The current yield equals the coupon payment divided by the bond price.
3. If the market rate is less than the coupon rate, bonds will be sold at a discount.
4. Sinking funds reduce bond holder risk.
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