Prices of longer maturity bonds

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Simple interest is charged on bank bills while compound interest is applied on bonds.

Prices of longer maturity bonds are more sensitive to interest rate changes.

If XYZ Corp's $1,000 8% bond with 10 years to maturity is selling at $960, the yield is less than 8%.

A bond with a coupon rate of 10% and yield of 12% will sell at a discount.

Which is wrong?

Reference no: EM132107937

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