Question: Suppose you are trying to evaluate a bond. Which one of the following is FALSE? A. The lower the yield to maturity, the higher the
Suppose you are trying to evaluate a bond. Which one of the following is FALSE? A. The lower the yield to maturity, the higher the present value of the coupon payments. B. Bonds with high coupon payments are generally (all else equal) more sensitive to changes in interest rates than bonds with lower coupon payments. C. When market yields rise, bond prices will fall, all else equal. D. Reading the book usually helps my performance on exams. E. Longer to maturity bonds are more sensitive (all else equal) to changes in interest rates than shorter to maturity bonds.
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