Which of the Following Statements Is FALSE

question 58

Multiple Choice

Which of the following statements is FALSE?

• A) The internal rate of return (IRR) of an investment opportunity is the discount rate at which the net present value (NPV) of the investment opportunity is equal to zero.
• B) When prices are quoted in the bond market, they are conventionally quoted in increments of $1000.
• C) The yield to maturity for a zero-coupon bond is the return you will earn as an investor from holding the bond to maturity and receiving the promised face value payment.
• D) Zero-coupon bonds are also called pure discount bonds.

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Definitions:

Improper Fractions

Ratios in which the top number is equal to or larger than the bottom number.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible values by dividing both by their greatest common divisor.

Mixed Numbers

Mixed Numbers are numbers consisting of an integer and a fraction, commonly used in mathematics to represent sums of whole numbers and fractions.

Improper Fractions

A fraction in which the top number exceeds the bottom number, indicating it represents a whole number plus a fraction.