The price of the bond is greater than the par value

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Reference no: EM131990151

TRUE/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)

Reference no: EM131990151

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