Which of the Following Statements About Bonds Is NOT True

question 56

Multiple Choice

Which of the following statements about bonds is NOT true?

• A) The greater the default risk, the greater the yield.
• B) Bonds selling at premium are especially high quality.
• C) The less marketable a bond, the higher the yield.
• D) Municipal bonds have lower yields than similar corporate bonds.

Understand the physiological mechanism behind action potentials in neurons.

Recognize diseases affecting the nervous system and understand their causative agents.

Acknowledge the synaptic transmission process between neurons.

Learn about the role of the thalamus and hypothalamus in regulating emotions and autonomic functions.

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Definitions:

Zero-Coupon Bond

A type of bond that does not pay periodic interest and is sold at a discount from its face value, with the full face value being paid at maturity.

Implicit Interest

The interest represented by the difference between the cash price of a product and the amount financed over time, not directly stated as an interest rate.

Face Value

The nominal or dollar value of a security stated by the issuer, which is the amount paid back to the holder at maturity.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is sold at a discount from its face value, with the full face value being paid at maturity.