Which of the Following Statements Is False

question 13

Multiple Choice

Which of the following statements is false?

• A) Zero-coupon bonds are also called pure discount bonds.
• B) The IRR of an investment opportunity is the discount rate at which the NPV of the investment opportunity is equal to zero.
• C) The yield to maturity for a zero-coupon bond is the return you will earn as an investor from holding the bond to maturity and receiving the promised face value payment.
• D) When prices are quoted in the bond market, they are conventionally quoted in increments of $1000.

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Definitions:

Sampling Distribution

The probability distribution of a statistic based on a large number of samples or simulations.

Nonnormal Population

Refers to a population that does not follow a normal distribution, which can affect the choice of statistical methods used for analysis.

Sample Measurements

Observations or data collected from a subset of a population for the purpose of statistical analysis.

Sampling Distribution

A probability distribution of a statistic obtained from a large number of samples drawn from a specific population.