When the required rate of return on a bond equals

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Reference no: EM13927922

Which of the following statements is false?

a. When the required rate of return on a bond equals its coupon rate, the bond will sell at its par value.

b. When interest rates rise, bond prices on outstanding issues fall.

c. When interest rates fall, bond prices on outstanding issues rise.

d. The price of a bond at its maturity is equal to the final coupon payment. e. The required rate of return on an outstanding bond is the current rate of interest on similar bonds of equal risk.

Reference no: EM13927922

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