Which of the Following Statements Is FALSE

question 63

Multiple Choice

Which of the following statements is FALSE?

• A) If a bond is selling at a discount to par, then its current yield will be less than its yield to maturity.
• B) If a bond is selling at its par value, then its current yield equals its yield to maturity.
• C) If a bond is selling at a premium, then its current yield will be greater than its yield to maturity.
• D) All else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons.

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Definitions:

Chart Of Accounts

A list of accounts and the account numbers that identify their location in the ledger.

Special Ledger

A ledger used to record and track transactions of a specific nature, separate from the general ledger.

Accounting Systems

Frameworks used to collect, monitor, and interpret financial information of an organization or individual.

Chart Of Accounts

This is a listing of all the accounts in the general ledger, each account accompanied by a reference number.