Question: TRUE OR FALSE! 1. If the yield to maturity is greater than the coupon rate, the price of the bond is greater than the par

TRUE OR FALSE!

1. If the yield to maturity is greater than the coupon rate, the price of the bond is greater than the par value.

2. If the interest rate is 7% compounded annually then we would prefer to receive $110 two years from now over the option of receiving $100 today.

3. If the interest rate increases than the future value will decrease. (assuming a positive interest rate, all else equal)

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