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Homework answers / question archive / Which of the following statements is FALSE?Select one: a
Which of the following statements is FALSE?Select one:
a. When a bond is trading at a discount, the price drop when a coupon is paid will be larger than the price increase between coupons, so the bond's discount will tend to decline as time passes.
b. Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid.
c. When a bond trades at a price equal to its face value, it is said to trade at par.
d. As interest rates and bond yields rise, bond prices will fall.
