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Which of the following statements is most FALSE? O a. The price of a 10% coupon bond trading at par will remain at $1,000 if

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Which of the following statements is most FALSE? O a. The price of a 10% coupon bond trading at par will remain at $1,000 if the market interest rate remains at 10%. Therefore, its current yield will remain at 10%, and its capital gains yield will be zero each year. O b. If the going rate is 9%, a 7% bond trades at a discount; but at maturity, it must sell at par because that is the amount the company will pay its bondholders. Therefore, its price must rise over time. O c. If the going rate is 11%, a 13% coupon bond trades at a premium. However, its price must be equal to its par value at maturity; so the price must decline over time. d. Three bonds that all have 15 years left to maturity can have different prices, even if they each have the same credit risk. e. If a bond has a sinking fund provision and interest rates have fallen below the coupon rate, the firm will most likely make its required purchase of bonds on the open market that year

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