Which of the following statements is FALSE? A. When a bond is trading at a discount, the price drop when a coupon is paid will be larger than the price increase between coupons, so the bond's discount will tend to decline as time passes. B. Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid. C. When a bond trades at a price equal to its face value, it is said to trade at par. D. As interest rates and bond yield rise, bond prices will fall.

Correct option is (A)

Explanation:

A bond can be sold at par, discount or premium. A bond that is sold at discount means selling price is lower than face value or par value of the bond. In this case, price increase between coupons is more than the price drop when coupon is paid. So, bond's price rise over time and discount falls subsequently.

If bonds are sold at premium that is sale value is more than face value of bond, then price drop when coupon is paid is more than increase in price between coupon payments.

So, the statement is incorrect. Statement will be correct in case of bonds trading at premium.

answer; ///i believe that the correct answer is (a); change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.