Which of the Following Statements Is False

question 84

Multiple Choice

Which of the following statements is false?

• A) Prices of bonds with lower durations are more sensitive to interest rate changes.
• B) When a bond is trading at a discount, the price increase between coupons will exceed the drop when a coupon is paid, so the bond's price will rise and its discount will decline as time passes.
• C) Coupon bonds may trade at a discount, at a premium, or at par.
• D) The sensitivity of a bond's price to changes in interest rates is the bond's duration.

---

Definitions:

Psychoanalysis

A set of psychological theories and therapeutic methods which have their origin in the work and theories of Sigmund Freud, emphasizing unconscious psychological processes.

Sigmund Freud

An Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Structuralism

An approach in psychology and other social sciences that emphasizes understanding the structure of the human mind or society by analyzing its components and their interactions.

Basic Elements

Fundamental components or parts that serve as building blocks for constructing or understanding a complex whole.