Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) Prices of bonds with lower durations are more sensitive to interest rate changes.
B) When a bond is trading at a discount,the price increase between coupons will exceed the drop when a coupon is paid,so the bond's price will rise and its discount will decline as time passes.
C) Coupon bonds may trade at a discount,at a premium,or at par.
D) The sensitivity of a bond's price to changes in interest rates is the bond's duration.