Which of the Following Statements Is FALSE

question 97

Multiple Choice

Which of the following statements is FALSE?

• A)When a bond is trading at a discount,the price drop when a coupon is paid will be larger than the price increase between coupons,so the bond's discount will tend to decline as time passes.
• B)When a bond trades at a price equal to its face value,it is said to trade at par.
• C)As interest rates and bond yields rise,bond prices will fall.
• D)Ultimately,the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid.

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