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:

Reciprocity

A social norm where a positive action leads to another positive action, fostering mutual exchange and cooperation among individuals.

Conscientious Employees

Employees who are diligent, responsible, and reliable in their work, often exceeding job expectations.

Constructive Resistance

Opposition or push-back that is intended to bring about positive change or improvement.

Dysfunctional Resistance

Counterproductive opposition to change or new ideas, which can harm an organization or group's progress.