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:

Municipal Obligations

Debts issued by municipalities, often in the form of bonds, to finance public projects such as roads and schools.

FASB Conceptual Framework

A set of objectives and fundamentals developed by the Financial Accounting Standards Board to guide the creation of accounting standards.

Asset Characteristics

The inherent properties and qualities of an asset that affect its value, performance, and risk profile.