Yield to maturity reflects the current market rate

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Reference no: EM13950872

Which of the following statement is FALSE?

A. If coupon rate is lower than its yield to maturity, then the bond would sell at a discount.

B. Stock valuation models depend on all past and future dividend payments.?

C. Yield to maturity reflects the current market rate and it is the appropriate discount rate that matches the present value of the bond's cash flow stream and price of a bond.

D. The faster you pay off of mortgage, the more you save on interest; this is one of the advantages of paying off a loan earlier.

E. Dividend valuation with a constant growth model is similar to a growing perpetuity problem.?

Reference no: EM13950872

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