Coupon interest rate if a bond is trading at premium

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Reference no: EM13948861

Why it's true or false

1- Yield to maturity is higher than the coupon interest rate if a bond is trading at Premium.

2- There exists a negative relationship between outstanding bond prices and going market interest rates.

3- The cost of perpetual preferred stock is found as the preferred's annual dividend divided by the market price of the preferred stock. No adjustment is needed for taxes because preferred dividends, unlike interest on debt, are not deductible by the issuing firm.

Reference no: EM13948861

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