Which of the following statements is FALSE?
A) A debenture would usually be more risky than a mortgage bond that is issued by the same firm.
B) A bond will sell at a discount if the prevailing required rate of return is more than the bond's coupon rate.
C) A short-term bond will fluctuate less in value than a long-term bond if interest rates fluctuate.
D) Interest rates and bond prices usually move in the same direction.
Correct Answer:
Verified
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