Consider each of the following bonds: 
Each bond has a face value of $1,000 and a yield to maturity of 8%.Which of the following statements is NOT correct?
A) Bond A sells at a discount,while Bond B sells at a premium.
B) If the yield to maturity on each bond falls to 7%,Bond C will have the largest percentage increase in its price.
C) Bond C has the most reinvestment risk.
D) Bond C has the most price risk.
E) If the yield to maturity is constant,the price of Bond A will continue to increase over its life until it finally sells at par.
Correct Answer:
Verified
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