Which of the Following Statements Is FALSE

question 99

Multiple Choice

Which of the following statements is FALSE?

• A)The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.
• B)If the zero-coupon yield curve is downward sloping,the yield to maturity will decrease with the coupon rate.
• C)The information in the zero-coupon yield curve is sufficient to price all other risk-free bonds.
• D)When the yield curve is flat,all zero-coupon and coupon-paying bonds will have the same yield,independent of their maturities and coupon rates.

---

Definitions:

Equilibrium Output

The level of output where the quantity of goods or services producers are willing to supply equals the quantity consumers are willing to buy, resulting in market equilibrium.

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and it has little control over the market price.

MC Curve

The graphical representation of how the cost to produce an additional unit of a good changes with the production volume.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices over a short period, where at least one input is fixed.