Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) We can use the law of one price to compute the price of a coupon bond from the prices of zero-coupon bonds.
• B) The plot of the yields of coupon bonds of different maturities is called the coupon-paying yield curve.
• C) It is possible to replicate the cash flows of a coupon bond using zero-coupon bonds.
• D) Because the coupon bond provides cash flows at different points in time, the yield to maturity of a coupon bond is the simple average of the yields of the zero-coupon bonds of equal and shorter maturities.

---

Definitions:

Observational Learning

Acquiring new behaviors or knowledge by paying attention to and replicating others' actions and consequences.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions.

Fixed-Interval Schedule

A type of reinforcement schedule in operant conditioning where rewards are provided after a specific, constant period of time has passed.

Variable-Ratio Schedule

A reinforcement schedule in which the number of responses needed for a reward varies, this schedule tends to produce a high and consistent rate of response.