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:

Task Cohesion

Refers to the extent to which members of a group work together to achieve common goals.

Multilevel Nature

Referring to the complexity and layers involved in a process, situation, or system, which operates or exists on several different levels or stages.

Cohesion

The tendency of a group to stay united while working towards goals and satisfying the emotional needs of its members.

Cohesion

The force that binds members of a group together, creating a sense of belonging and mutual support among its members.