Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) If the bond trades at a discount, an investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond.
• B) Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at, or very near to, par.
• C) Coupon bonds always trade for a discount.
• D) At any point in time, changes in market interest rates affect a bond's yield to maturity and its price.

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Definitions:

Security Measures

Procedures or actions taken to enhance the safety and protect the assets of individuals or businesses from various threats.

Safeguard Inventory

Strategies and measures implemented by a company to protect its inventory from damage, theft, and other losses.

FOB Shipping Point

A term used in shipping indicating that the buyer is responsible for goods once they are shipped, and must cover transport costs.

Net Income

Net income is the total earnings of a company after deducting all expenses, taxes, and losses, indicating the company's profitability over a specific period.