Which of the Following Statements Is FALSE

question 74

Multiple Choice

Which of the following statements is FALSE?

• A)Because the cash flows promised by the bond are the most that bondholders can hope to receive,the cash flows that a purchaser of a bond with credit risk expects to receive may be less than that amount.
• B)By consulting bond ratings,investors can assess the credit-worthiness of a particular bond issue.
• C)Because the yield to maturity for a bond is calculated using the promised cash flows,the yield of bonds with credit risk will be lower than that of otherwise identical default-free bonds.
• D)A higher yield to maturity does not necessarily imply that a bond's expected return is higher.

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Definitions:

Mathematical Scheduling Models

Methods or algorithms used to allocate resources and time optimally to tasks or operations.

Forward Scheduling

A planning approach that starts scheduling activities or operations from the earliest possible date and moves forward in time to establish due dates or delivery dates.

End Items

Final products that are completed and ready to be sold or delivered to customers.

Requirements Known

Pertains to a condition where the specifications, needs, or conditions for a project or product are clearly identified and documented.