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Which of the following statements is false ? A When the required rate of return on a bond equals its coupon rate, the bond will
Which of the following statements is false?
A | When the required rate of return on a bond equals its coupon rate, the bond will sell at its par value. |
B | When interest rates rise, bond prices on outstanding issues fall. |
C | When interest rates fall, bond prices on outstanding issues rise. |
D | The price of a bond at its maturity is equal to the final coupon payment. |
E | The required rate of return on an outstanding bond is the current rate of interest on similar bonds of equal risk. |
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