Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Given the spot interest rates, we can determine the price and yield of any other default-free bond.
• B) As the coupon increases, earlier cash flows become relatively less important than later cash flows in the calculation of the present value.
• C) When the yield curve is flat, all zero-coupon and coupon-paying bonds will have the same yield, independent of their maturities and coupon rates.
• D) When Canadian bond traders refer to "the yield curve," they are often referring to the coupon-paying treasury yield curve.

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