Which of the Following Statements Is FALSE

question 89

Multiple Choice

Which of the following statements is FALSE?

• A)When a bond is trading at a discount,the price drop when a coupon is paid will be larger than the price increase between coupons,so the bond's discount will tend to decline as time passes.
• B)When a bond trades at a price equal to its face value,it is said to trade at par.
• C)As interest rates and bond yield rise,bond prices will fall.
• D)Ultimately,the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid.

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Definitions:

Aggressive

Behaving in a hostile or violent manner that is often threatening towards others.

Observational Learning

A learning process where individuals acquire new behaviors or information by watching others.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Imprinting

The process by which some animals exhibit the fixed action pattern (FAP) of attachment in response to a releasing stimulus. The FAP occurs during a critical period and is difficult to modify.