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Which of the following statements is FALSE? A. As interest rates and bond yield rise, bond prices will fall. B. When a bond is trading
Which of the following statements is FALSE?
A. | As interest rates and bond yield rise, bond prices will fall. | |
B. | When a bond is trading at a discount, it indicates that coupon rate is higher than the yield to maturity. | |
C. | When a bond trades at a price equal to its face value, it is said to trade at par. | |
D. | Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid. |
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