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Which of the following statements is NOT CORRECT?

All else equal, bonds with longer maturities have more interest rate (price) risk than bonds with shorter maturities.

If a bond is selling at its par value, its current yield equals its yield to maturity.

If a bond is selling at a premium, its current yield will be greater than its yield to maturity.

All else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons.

If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91419534

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