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.

---

Definitions:

Indentured Servants

Laborers bound under a contract to work for a specific person for a designated period in exchange for transportation, food, and accommodation.

Manufacturing

The process of producing goods in large quantities using machinery and labor, often within an industrial setting.

Trade

The exchange of goods, services, or both within and between countries or individuals.

Exported

The act of sending goods or services from one country to another country for sale or trade.