Which of the Following Statements Is False

question 31

Multiple Choice

Which of the following statements is false?

• A) The principal or face value of a bond is the notional amount we use to compute the interest payments.
• B) Payments are made on bonds until a final repayment date, called the term date of the bond.
• C) The coupon rate of a bond is set by the issuer and stated on the bond certificate.
• D) The promised interest payments of a bond are called coupons.

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