Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)We can use the law of one price to compute the price of a coupon bond from the prices of zero-coupon bonds.
• B)The plot of the yields of coupon bonds of different maturities is called the coupon-paying yield curve.
• C)It is possible to replicate the cash flows of a coupon bond using zero-coupon bonds.
• D)Because the coupon bond provides cash flows at different points in time,the yield to maturity of a coupon bond is the simple average of the yields of the zero-coupon bonds of equal and shorter maturities.

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