Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A) If a bond trades at a premium, its yield to maturity will exceed its coupon rate.
• B) A bond that trades at a premium is said to trade above par.
• C) When a coupon-paying bond is trading at a premium, an investor's return from the coupons is diminished by receiving a face value less than the price paid for the bond.
• D) Holding fixed the bond's yield to maturity, for a bond not trading at par, the present value of the bond's remaining cash flows changes as the time to maturity decreases.

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Definitions:

Catarrhal Stage

Inflammation of the mucous membranes.

Whooping Cough

A highly contagious respiratory tract infection characterized by severe coughing fits and a distinctive "whooping" sound when inhaling.

Pertussis

A highly contagious respiratory disease also known as whooping cough, caused by the bacterium Bordetella pertussis.

Sensitivity

Abnormal susceptibility to a substance.