Which of the following statements is false

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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4 of 38
Which of the following statements is false?
O A. The yield to maturity is greater than the coupon rate when the bond price is below its face
value.
O B. Arise in interest rates is associated with a fall in bond prices.
O C. The price of a coupon bond and the yield to maturity are positively related.
O D. The return equals the yield to maturity only if the holding period of a bond equals the time to
maturity.
Unsure
Transcribed Image Text:4 of 38 Which of the following statements is false? O A. The yield to maturity is greater than the coupon rate when the bond price is below its face value. O B. Arise in interest rates is associated with a fall in bond prices. O C. The price of a coupon bond and the yield to maturity are positively related. O D. The return equals the yield to maturity only if the holding period of a bond equals the time to maturity. Unsure
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