Business, 07.07.2021 01:50 Alinakohshsb

Which of the following statements is INCORRECT. All else equal, 1. If a bond's yield-to-maturity (YTM, i. e., market interest rate) is greater than its coupon rate, then the bond is trading at a premium. 2. Duration measures the sensitivity of a bond's price to changes in interest rate. 3. If a bond's market value is equal to its par amount, then its YTM will be equal to its coupon rate. 4. The estimated market price of a bond is the sum of its future discounted cash flows.

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Which of the following statements is INCORRECT. All else equal, 1. If a bond's yield-to-maturity (YT...