Which of the Following Statements Is False

question 90

Multiple Choice

Which of the following statements is false?

• A) Because the cash flows promised by the bond are the most that bondholders can hope to receive, the cash flows that a purchaser of a bond with credit risk expects to receive may be less than that amount.
• B) By consulting bond ratings, investors can assess the credit-worthiness of a particular bond issue.
• C) Because the yield to maturity for a bond is calculated using the promised cash flows, the yield of bonds with credit risk will be lower than that of otherwise identical default-free bonds.
• D) A higher yield to maturity does not necessarily imply that a bond's expected return is higher.

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Definitions:

Psychological Empowerment

The perception of having the control, competence, meaningfulness, and impact in one’s work role.

Developmental Support

Assistance or resources provided to an individual or group to facilitate growth, learning, and improvement in personal, academic, or professional areas.

Vroom and Yetton

A decision-making model that outlines how leaders can choose their leadership styles based on the context, particularly the importance of quality and the acceptance of the decision by others.

Autocratic Decision

A decision-making style where the leader makes decisions unilaterally without consulting others, often based on their own authority and judgment.