Relationship between yield to maturity and bond prices

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Reference no: EM13834950

Which of the following statements about the relationship between yield to maturity and bond prices is false?

1. When interest rates go up, bond prices go up.

2. When the YTM and coupon rate are the same, the bond is called a par value bond

3. A bond selling at a discount means that the coupon rate is less than the YTM

4. A bond selling at a premium means that the coupon rate is greater than the YTM

Reference no: EM13834950

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