Which of the Following Is False

question 43

Multiple Choice

Which of the following is false?

• A) The issuer of a bond is a borrower.
• B) The person who buys a bond is a lender.
• C) Interest earned on corporate bonds is exempt from federal income taxes.
• D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.

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Definitions:

Dispositional Optimism

A general expectation that good things will happen, characterized by a stable tendency to believe that the future will bring positive outcomes.

Coping

The process of managing taxing circumstances, expending effort to solve personal and interpersonal problems, and seeking to master, minimize, or tolerate stress or conflict.

Traumatic Events

Incidents that cause severe psychological distress and can lead to lasting mental health issues.