Answer:
The answer is D. The price of a bond at its maturity is equal to the final coupon payment
Explanation:
All the options are correct except option D which states that The price of a bond at its maturity is equal to the final coupon payment.
The price of a bond is never equal to the final coupon payment. Coupon payment is the periodic payment paid by the issuer. It can be annual or semiannual or quarter etc. While bond price is the present value of the future cash flows of the bond. Bond price is determined at the initiation of the transaction.
It is the face value of the bond plus coupon payment that is paid at the maturity of the bond.
