Examlex
Which of the following statements is false?
Zero Coupon Treasury Bond
A government bond that does not pay interest throughout its life and is sold at a discount from the face value.
Reinvestment Rate Risk
The risk that the returns from reinvesting cash flows will be lower than expected due to changes in interest rate.
Market Interest Rate
The prevailing rate of interest available in the marketplace for securities of similar risk and maturity.
Coupon Rate
The coupon rate represents the yearly interest percentage that is paid out on a bond, depicted as a proportion of its nominal value.
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