Which of the following is NOT true regarding bonds?
A) As interest rates (yield to maturity) rises, the price of bonds with similar risks will also rise.
B) If the market interest equals the coupon rate of a bond the price of the bond will be equal to its par value
C) Assuming no bankruptcy, as the maturity date of a bond approaches, a bond's price will approach its par value.
D) A bond that is trading at a price above its par value is often referred to as a premium bond.
Correct Answer:
Verified
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