Which of the following statements is NOT CORRECT?
A) If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.
B) All else equal, bonds with longer maturities have more interest
Rate (price) risk than bonds with shorter maturities.
C) If a bond is selling at its par value, its current yield equals its
Yield to maturity.
D) If a bond is selling at a premium, its current yield will be
Greater than its yield to maturity.
E) All else equal, bonds with larger coupons have greater interest
Rate (price) risk than bonds with smaller coupons.
Correct Answer:
Verified
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