Which of the Following Statements Is FALSE

question 70

Multiple Choice

Which of the following statements is FALSE?

• A)If the bond trades at a discount,an investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond.
• B)Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at,or very near to,par.
• C)Coupon bonds always trade for a discount.
• D)At any point in time,changes in market interest rates affect a bond's yield to maturity and its price.

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Definitions:

Owner's Equity

The residual interest in the assets of the enterprise after deducting liabilities, essentially the net worth of the company attributable to the owners.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.

Assets

Resources owned by a company that have economic value and can be converted into cash or are expected to generate income.

Advertising

The activity or profession of producing commercials, billboards, and other promotional materials to promote products or services.