Which of the Following Statements Is False

question 27

Multiple Choice

Which of the following statements is false?

• A) By convention, practitioners always plot the yield of the most senior issued bonds, termed the on-the-run-bonds.
• B) We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
• C) If the zero-coupon yield curve is upward sloping, the resulting yield to maturity decreases with the coupon rate of the bond.
• D) The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

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Definitions:

Staples

Metal clips used during surgery to close wounds or incisions, faster than suturing and often used for larger or deeper cuts.

Sutures

Threads or staples used by surgeons to close wounds or surgical incisions.

Erythema

Skin redness or rash caused by increased blood flow to the superficial capillaries.

Primary Intention

The method of wound healing where the wound edges are directly closed, leading to minimal scarring.