Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)Prices of bonds with lower durations are more sensitive to interest rate changes.
• B)When a bond is trading at a discount,the price increase between coupons will exceed the drop when a coupon is paid,so the bond's price will rise and its discount will decline as time passes.
• C)Coupon bonds may trade at a discount,at a premium,or at par.
• D)The sensitivity of a bond's price to changes in interest rates is the bond's duration.

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Definitions:

Surveys

A method of gathering information from individuals, typically in the form of a questionnaire to collect opinions, behaviors, or demographics.

Primary Data

Information collected directly for a specific research purpose, gathered firsthand by the researcher.

Large Groups

An assembly of a significant number of individuals gathered for a specific purpose or activity.

Direct Quotations

The exact reproduction of another speaker's or writer's words, enclosed in quotation marks to distinguish the quoted material from the original text.