Which of the Following Statements Is False

question 61

Multiple Choice

Which of the following statements is false?

• A) When a bond is trading at a discount, the price drop when a coupon is paid will be larger than the price increase between coupons, so the bond's discount will tend to decline as time passes.
• B) When a bond trades at a price equal to its face value, it is said to trade at par.
• C) As interest rates and bond yield rise, bond prices will fall.
• D) Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupon are paid.

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Definitions:

Age Group

A classification of people based on their age, typically used in demographics, marketing, and social studies.

Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment, often used as an indicator of the health of an economy.

Unemployment Benefits

Financial payments made by the government to individuals who are unemployed and seeking work.

Labor Force

The labor force comprises all individuals above a certain age who are either employed or actively seeking employment, representing the available workforce for an economy.