Friday 12 October 2012

Which of the following statements about the relationship between yield to maturity and bond prices is FALSE? 6

13) Which of the following statements about the relationship between yield to maturity and bond prices is FALSE? 6
A) When the yield to maturity and coupon rate are the same, the bond is called a par value bond.
B) A bond selling at a premium means that the coupon rate is greater than the yield to maturity.
C) When interest rates go up, bond prices go up.
D) A bond selling at a discount means that the coupon rate is less than the yield to maturity.


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