Which of the Following Statements Is FALSE

question 108

Multiple Choice

Which of the following statements is FALSE?

• A)If a bond trades at a premium,its yield to maturity will exceed its coupon rate.
• B)A bond that trades at a premium is said to trade above par.
• C)When a coupon-paying bond is trading at a premium,an investor's return from the coupons is diminished by receiving a face value less than the price paid for the bond.
• D)Holding fixed the bond's yield to maturity,for a bond not trading at par,the present value of the bond's remaining cash flows changes as the time to maturity decreases.

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Definitions:

Market Basket

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A sovereign state and maritime republic from the 7th century to 1797, known for its economic, cultural, and military power in the Mediterranean region.

Bellini

An influential Italian Renaissance painter known for his keen use of color and development of a more naturalistic portrayal of figures.

Official Painter

An artist who is officially commissioned by a government or monarchy to create portraits or document events.