Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

• A) Unlike the case of bonds that pay coupons, for zero-coupon bonds, there is no simple formula to solve for the yield to maturity directly.
• B) Because we can convert any bond price into a yield, and vice versa, bond prices and yields are often used interchangeably.
• C) The internal rate of return (IRR) of an investment in a bond is given a special name, the yield to maturity (YTM).
• D) One advantage of quoting the yield to maturity rather than the price is that the yield is independent of the face value of the bond.

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Definitions:

Feedback

Information provided regarding aspects of one’s performance or understanding, aimed at improving future efforts.

Revising

The process of reviewing, altering, and amending a piece of text or any other work, with the intention of improving it.

Sexist Language

Language that discriminates against or stereotypes individuals based on their gender.

Nonsexist Language

Language that treats both sexes neutrally, that does not make assumptions about the proper gender for a job, and that does not imply that one sex is superior to or takes precedence over the other.