Which of the Following Is False

question 22

Multiple Choice

Which of the following is false?

• A)The price of a previously issued bond is the present value of the future stream of income discounted at the current interest rate on a security of equal risk, liquidity, and maturity.
• B)The discount rate for bonds includes the risk free rate plus the appropriate risk premium.
• C)A bond generally makes monthly coupon payments.
• D)Treasuries are considered to be default risk free.

---

Definitions:

Personal Distress

Negative feelings and emotions experienced by an individual, often in reaction to stress or suffering in their environment or themselves.

Socially Acceptable

Behaviors or actions that are considered appropriate and conform to the norms and expectations of a particular society or group.

Unusual

Not common, rare, or ordinary; something that deviates from what is typically expected or normal.

Generalized Anxiety Disorder

A chronic condition marked by excessive, uncontrollable worry about everyday matters.