Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) When a bond is trading at a discount, the price drop when a coupon is paid will be larger than the price increase between coupons, so the bond's discount will tend to decline as time passes.
• B) When a bond trades at a price equal to its face value, it is said to trade at par.
• C) As interest rates and bond yield rise, bond prices will fall.
• D) Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupons are paid.

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Definitions:

Transportation

The system or means by which passengers or goods are moved from one place to another.

Construction

The process of building or assembling infrastructure, buildings, and other physical structures.

Unionization Rate

The percentage of employees in a labor force that are members of a union.

Legal Workers

Legal workers are individuals who are lawfully authorized to work in a specific country, either as citizens, permanent residents, or with a valid work visa.