Which of the Following Statements Is FALSE

question 97

Multiple Choice

Which of the following statements is FALSE?

• A)When a bond is trading at a discount,the price drop when a coupon is paid will be larger than the price increase between coupons,so the bond's discount will tend to decline as time passes.
• B)When a bond trades at a price equal to its face value,it is said to trade at par.
• C)As interest rates and bond yields rise,bond prices will fall.
• D)Ultimately,the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid.

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Definitions:

Competitiveness

denotes the characteristic of striving to be more successful or superior, especially in a commercial or professional context.

Productivity

measures the efficiency of production of goods or services expressed as a ratio of output to inputs.

Promotes Innovation

Encourages or facilitates the introduction of new ideas, products, or methods, fostering a culture of creativity and advancement.

Inhibits Innovation

Refers to factors or mechanisms that obstruct or slow down the process of creating new ideas, products, or methods.