Which of the Following Statements Is FALSE

Which of the following statements is FALSE?

A) A bond trades at par when its coupon rate is equal to its yield to maturity.
B) The clean price of a bond is adjusted for accrued interest.
C) The price of the bond will drop by the amount of the coupon immediately after the coupon is paid.
D) If a coupon bond's yield to maturity exceeds its coupon rate,the present value of its cash flows at the yield to maturity will be greater than its face value.

Correct Answer:

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