Which of the following is false?
A) The price of a previously issued bond is the present value of the future stream of income discounted at the current interest rate on a security of equal risk, liquidity, and maturity.
B) The discount rate for bonds includes the risk free rate plus the appropriate risk premium.
C) A bond generally makes monthly coupon payments.
D) Treasuries are considered to be default risk free.
Correct Answer:
Verified
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