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Which of the Following Statements Is False

Question 23

Multiple Choice

Which of the following statements is false?


A) A bond trades at par when its coupon rate is equal to its yield to maturity.
B) To get the actual cash price of a bond, the clean price must be adjusted for accrued interest.
C) The price of the bond will drop by the amount of the coupon immediately after the coupon is paid.
D) If a coupon bond's yield to maturity exceeds its coupon rate, the present value of its cash flows at the yield to maturity will be greater than its face value.

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