Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) If the bond trades at a discount, an investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond.
• B) Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at, or very near to, par.
• C) Coupon bonds always trade for a discount.
• D) At any point in time, changes in market interest rates affect a bond's yield to maturity and its price.

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