Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) One advantage of quoting the yield to maturity rather than the price is that the yield is independent of the face value of the bond.
• B) Unlike the case of bonds that pay coupons, for zero-coupon bonds there is no simple formula to solve for the yield to maturity directly.
• C) Because we can convert any bond price into a yield, and vice versa, bond prices and yields are often used interchangeably.
• D) The IRR of an investment in a bond is given a special name, the yield to maturity (YTM).

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Definitions:

Employment Insurance (EI)

A government program providing temporary financial assistance to unemployed workers who have lost their job through no fault of their own.

Resign

The act of formally quitting a job or position, often by submitting a notice of resignation to one's employer.

Terminated for Cause

The dismissal of an employee due to a breach of contract or violation of company policies.

Legally Required Benefits

Employer-provided benefits that are mandated by law, such as social security, unemployment insurance, and workers' compensation.