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Which of the following statements is false? Question 1 5 options: A bond trades at par when its coupon rate is equal to its yield
Which of the following statements is false?
Question options:
A bond trades at par when its coupon rate is equal to its yield to maturity.
To get the actual cash price of a bond, the clean price must be adjusted for accrued interest.
The price of the bond will drop by the amount of the coupon immediately after the coupon is paid.
If a coupon bond's yield to maturity exceeds its coupon rate, the present value of its cash flows at the yield to maturity will be greater than its face value.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
