Which of the Following Statements Is False

question 55

Multiple Choice

Which of the following statements is false?

• A) The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default-free bond at its current price and hold it to maturity.
• B) The yield to maturity of a bond is the discount rate that sets the future value of the promised bond payments equal to the current market price of the bond.
• C) Financial professionals also use the term spot interest rates to refer to the default-free zero-coupon yields.
• D) When we calculate a bond's yield to maturity by solving the formula, Price of an n-period bond = + + ... + , the yield we compute will be a rate per coupon interval.

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Definitions:

HRM Audit

A comprehensive evaluation of the strategies, practices, and operations of a company's Human Resources department to identify strengths and areas for improvement.

HRM

Human Resource Management, the practice of recruiting, hiring, deploying, and managing an organization's employees.

Mean

A measure of central tendency that is calculated by adding all numbers in a data set and dividing by the number of observations.