Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default free bond at its current price and hold it to maturity.
• B) The yield to maturity of a bond is the discount rate that sets the future value of the promised bond payments equal to the current market price of the bond.
• C) Financial professionals also use the term spot interest rates to refer to the default-free zero-coupon yields.
• D) When we calculate a bond's yield to maturity by solving the formula, Price of an n-period bond = + + ... + , the yield we compute will be a rate per coupon interval.

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Definitions:

Beginning College

The initial stage of higher education where students adapt to college life and academic responsibilities.

Starting a Career

The initial phase of entering the workforce or professional field, which encompasses choosing a profession, acquiring the necessary education or skills, and securing the first job or position in the chosen field.

Moving

The act of changing one’s residence or place of business; involves packing, transporting, and unpacking personal belongings or equipment.

Relativistic

Pertaining to the concept that points of view have no absolute truth or validity, being dependent instead on the perspectives and contexts from which they arise.