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Which of the Following Statements Is FALSE

Question 70

Multiple Choice

Which of the following statements is FALSE?


A) If the bond trades at a discount,an investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond.
B) Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at,or very near to,par.
C) Coupon bonds always trade for a discount.
D) At any point in time,changes in market interest rates affect a bond's yield to maturity and its price.

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