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Which of the following statements relating to bond pricing is false?
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An indenture is a legal document that spells out the contract between the bondholders and corporation.
Everything else being equal, a bond with 10 years to maturity will sell at a smaller premium or discount than a bond with 5 years to maturity.
A call option on a bond favors the firm rather than the investor.
Everything else being equal, greater differences between the coupon rate and the "required" rate will result in greater premiums or discounts.
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