Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A) If a bond trades at a premium, its yield to maturity will exceed its coupon rate.
• B) A bond that trades at a premium is said to trade above par.
• C) When a coupon-paying bond is trading at a premium, an investor's return from the coupons is diminished by receiving a face value less than the price paid for the bond.
• D) Holding fixed the bond's yield to maturity, for a bond not trading at par, the present value of the bond's remaining cash flows changes as the time to maturity decreases.

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Definitions:

Environmental Factors

External elements, like climate, water, land, and pollution, that significantly impact the development, behavior, and survival of organisms.

Maslow's Theory

A psychological viewpoint that categorizes human needs into a hierarchy, from basic physiological needs to self-actualization, asserting that higher needs can only be pursued once foundational needs are met.

Physiological Needs

Physiological needs are the basic necessities of life required by the body for survival, including food, water, shelter, and sleep, as outlined in Maslow's hierarchy of needs.

Self-Transcendence

Describes the experience of going beyond one's own self-interests, limitations, and experiencing a greater sense of connection to others and the world.