Which of the following statements is false?
A) When the prevailing market interest rate is higher than the coupon rate,the bond will be traded at a discount.
B) When the prevailing market interest rate is lower than the coupon rate,the bond will be traded at a premium.
C) The higher the coupon rate,the less sensitive the market price of the bond becomes to changes in prevailing market rates.
D) The longer the time to maturity,the less sensitive the market price of the bond becomes to changes in prevailing market rates.
Correct Answer:
Verified
Q31: For a 3-year bond with a face
Q32: Bill wants to buy five-year zero coupon
Q33: Jerry is planning to sell a bond
Q34: Jacqui has been offered a seven-year bond
Q35: Bonds sell at a discount off the
Q37: The yield to maturity of a bond
Q38: Stanley Richards is interested in buying a
Q39: In Australia,Treasury bonds pay coupons:
A)monthly.
B)semi-annually.
C)annually.
D)at maturity.
Q40: The Australian Treasury has issued 10-year zero
Q41: A 5-year bond with 10% coupon rate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents