Author Question: Which of the following is NOT true regarding bonds? (Read 56 times)

jojoperlo_ · **on:** Aug 7, 2023

Which of the following is NOT true regarding bonds?

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As interest rates (yield to maturity) rise, the price of bonds with similar risks will decline.

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If the market interest is higher than the coupon rate of a bond, the price of the bond will be greater than its par value.

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Assuming no bankruptcy, as the maturity date of a premium bond approaches, the premium bond’s price will keep decreasing.

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A bond that is trading at a price below its par value is often referred to as a discount bond.

miro2222 · **Reply #1 on:** Aug 7, 2023

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