Question
Which one of the following statements is FALSE? a. An investor will be willing to pay up to the point at which the current price
Which one of the following statements is FALSE? a. An investor will be willing to pay up to the point at which the current price of a share of stock equals the present value of the expected future dividends and the expected future sale price. b. Bonds sell at a discount off the par value when market rates for similar bonds are less than the bonds coupon rate. c. All other things being equal,a given change in the interest rates will have a greater impact on the price of a low-coupon bond than a higher-coupon bond with the same maturity.d.
Interest rate risk is the risk that bond prices will fluctuate as interest rate changes.
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