Which One of the Following Is NOT True

question 75

Multiple Choice

Which one of the following is NOT true?

• A)A bond issuer's rating is affected by its default risk.
• B)An investor holding the bond until maturity expects to receive its par value.
• C)Inflation does not affect the interest rates of bonds.
• D)Rating agencies use financial statements to assess the default probability of firms.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.