Which of the Following Statements Is FALSE

question 74

Multiple Choice

Which of the following statements is FALSE?

• A)Because the cash flows promised by the bond are the most that bondholders can hope to receive,the cash flows that a purchaser of a bond with credit risk expects to receive may be less than that amount.
• B)By consulting bond ratings,investors can assess the credit-worthiness of a particular bond issue.
• C)Because the yield to maturity for a bond is calculated using the promised cash flows,the yield of bonds with credit risk will be lower than that of otherwise identical default-free bonds.
• D)A higher yield to maturity does not necessarily imply that a bond's expected return is higher.

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Definitions:

Synergy

The cooperative interaction among groups or forces that creates an enhanced combined effect greater than the sum of their individual effects.

Strategic Planning

The process of defining an organization's strategy, or direction, and making decisions on allocating resources to pursue this strategy.

Long-term Goals

Objectives or targets that an organization or individual aims to achieve over an extended period, usually beyond one year.

Modern Strategy-making

A contemporary approach to creating and implementing strategies in businesses or organisations, focusing on adaptability, innovation, and incorporating technological advancements.