Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) When we refer to the "risk-free interest rate," we mean the rate on Treasury Bills of the Government of Canada.
• B) Interest rates vary with the investment horizon.
• C) All borrowers, besides the the borrowers of the Treasury Bills of the Government of Canada, have some risk of default.
• D) When interest on a loan is tax deductible, the effective after-tax interest rate is τ × (1 - r).

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