Which of the Following Statements Is NOT CORRECT

question 3

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) all else equal, bonds with longer maturities have more interest rate (price) risk than bonds with shorter maturities.
• B) if a bond is selling at its par value, its current yield equals its yield to maturity.
• C) if a bond is selling at a premium, its current yield will be greater than its yield to maturity.
• D) all else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons.
• E) if a bond is selling at a discount to par, its current yield will be less than its yield to maturity.

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