Which of the Following Statements Is FALSE

question 60

Multiple Choice

Which of the following statements is FALSE?

• A)A bond trades at par when its coupon rate is equal to its yield to maturity.
• B)The clean price of a bond is adjusted for accrued interest.
• C)The price of the bond will drop by the amount of the coupon immediately after the coupon is paid.
• D)If a coupon bond's yield to maturity exceeds its coupon rate,the present value of its cash flows at the yield to maturity will be greater than its face value.

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Definitions:

Linoleum

A durable, eco-friendly floor covering made from natural materials like linseed oil, cork dust, and wood flour, often used in homes and businesses.

Material Breach

A serious violation or failure to comply with the terms of a contract that results in significant harm or deprives one party of the benefit they reasonably expected from the agreement.

Faucets

Plumbing fixtures that control the release of water from a water supply system.

Linoleum

A durable, eco-friendly flooring material made from natural materials such as linseed oil, cork dust, and wood flour, often used in homes and businesses.