Which of the Following Statements Is False

question 27

Multiple Choice

Which of the following statements is false?

• A) By convention, practitioners always plot the yield of the most senior issued bonds, termed the on-the-run-bonds.
• B) We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
• C) If the zero-coupon yield curve is upward sloping, the resulting yield to maturity decreases with the coupon rate of the bond.
• D) The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

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Definitions:

Self-Fulfilling Prophecy

A situation where a belief or expectation, whether accurate or not, affects the outcome of a situation or the way people behave, making the initial belief come true.

Professionalization

Professionalization is the process by which an occupation transforms into a profession, typically by establishing formal training, educational standards, and ethical guidelines.

Wages High

Refers to compensation or earnings that are at the upper end of the pay scale, often above the average level within a particular job or industry.

Self-Fulfilling Prophecy

A self-fulfilling prophecy is an outlook or prediction that manifests into reality because of the interaction between belief and action.