Which of the Following Is NOT True Regarding Bonds

question 152

Multiple Choice

Which of the following is NOT true regarding bonds?

• A)As interest rates (yield to maturity) rises, the price of bonds with similar risks will also rise.
• B)If the market interest equals the coupon rate of a bond the price of the bond will be equal to its par value
• C)Assuming no bankruptcy, as the maturity date of a bond approaches, a bond's price will approach its par value.
• D)A bond that is trading at a price above its par value is often referred to as a premium bond.

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The act of expressing thoughts, beliefs, or a vision systematically to convey a particular ideological stance.

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