Which of the Following Statements Is False

question 14

Multiple Choice

Which of the following statements is false?

• A) Bond traders typically quote bond prices rather than bond yields.
• B) Treasury bills are zero-coupon bonds.
• C) Zero-coupon bonds always trade at a discount.
• D) The yield to maturity is typically stated as an annual rate by multiplying the calculated YTM by the number of coupon payments per year, thereby converting it to an APR.

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Definitions:

Obligation Imposed

A duty or responsibility enforced by law, regulation, or agreement.

Contract Formation

The process whereby parties agree upon and establish the terms of a contract, leading to a binding legal agreement.

Relaxation of Requirements

The easing or reduction of stringent rules, standards, or conditions, often to accommodate special circumstances.

Material Misrepresentation

A statement that is significantly untrue or misleading and, if known to be such, could have influenced the decision-making of a party in a contract or agreement.