Which of the Following Statements Is False

question 76

Multiple Choice

Which of the following statements is false?

• A) The amount of each coupon payment is determined by the coupon rate of the bond.
• B) Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.
• C) The simplest type of bond is a zero-coupon bond.
• D) Treasury bills are the Canadian government bonds with a maturity of up to one year.

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Definitions:

Context

The circumstances or background that surrounds and gives meaning to an event, statement, or idea.

Word

A single distinct element of speech or writing, used with others (or sometimes alone) to form a sentence and typically shown with a space on either side when written or printed.

Prime

A fundamental state or condition that precedes and influences the effectiveness of subsequent processes or responses.

Interpreting Sentences

The cognitive process of understanding the meaning of words in written or spoken form, constructing their syntactical relationships.