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Which of the Following Statements Is FALSE

Question 73

Multiple Choice

Which of the following statements is FALSE?


A) If a bond is selling at a discount to par, then its current yield will be less than its yield to maturity.
B) If a bond is selling at its par value, then its current yield equals its yield to maturity.
C) If a bond is selling at a premium, then 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.

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