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

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.

1 answer

When the yield to maturity and coupon rate are the same, the bond is called a par value bond.
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