Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A)The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default-free bond at its current price and hold it to maturity.
• B)The yield to maturity of a bond is the discount rate that sets the future value of the promised bond payments equal to the current market price of the bond.
• C)Financial professionals also use the term spot interest rates to refer to the default-free zero-coupon yields.
• D)When we calculate a bond's yield to maturity by solving the formula,Price of an n-period bond = + + ...+ ,the yield we compute will be a rate per coupon interval.

---

Definitions:

Essentialist Idea

The belief that certain phenomena are naturally and fundamentally determined by intrinsic properties rather than constructed or variable.

Gender

The physical, behavioral, and personality traits that a group considers normal for its male and female members.

Social Construction

A concept or perception that has been created and accepted by the members of a society through cultural or social practice.

Constructionist Perspective

A theoretical viewpoint that suggests knowledge and reality are not inherently natural but are constructed through social processes and interactions.