Which of the Below Statements Is FALSE

question 14

Multiple Choice

Which of the below statements is FALSE?

• A) The spread between Treasury securities and non-Treasury securities that are identical in all respects except for credit quality is referred to as a credit spread.
• B) The spread between any two maturity sectors of the market is called a maturity spread or yield curve spread.
• C) An option that is included in a bond issue is referred to as a prepayment option.
• D) The most common type of option in a bond issue is a call provision.

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Definitions:

Living

The condition of being alive; characterized by growth, metabolism, reproduction, and response to stimuli.

Pleasure

A feeling of happiness or satisfaction that comes from the enjoyment of experiences or activities.

Jeremy Bentham

An English philosopher, jurist, and social reformer regarded as the founder of modern utilitarianism.

Consequences

The outcomes, effects, or results that naturally or logically follow from an action or condition.