Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A)Zero-coupon bonds are also called pure discount bonds.
• B)The IRR of an investment opportunity is the discount rate at which the NPV of the investment opportunity is equal to zero.
• C)The yield to maturity for a zero-coupon bond is the return you will earn as an investor from holding the bond to maturity and receiving the promised face value payment.
• D)When prices are quoted in the bond market,they are conventionally quoted in increments of $1000.

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Definitions:

Quantity Supplied

The amount of a good that producers are willing and able to sell at a given price over a specific time period.

No Close Substitutes

A market condition where a product or service has no similar alternatives close enough to serve as a replacement, enhancing its unique value.

Diamonds

Precious stones consisting of a clear and typically colorless crystalline form of pure carbon, often used in jewelry.

Price-Taking Firm

A price-taking firm is a company that must accept the market price for its product, having no influence on the price due to its small size relative to the industry.