Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) We can use the law of one price to compute the price of a coupon bond from the prices of zero-coupon bonds.
• B) The plot of the yields of coupon bonds of different maturities is called the coupon-paying yield curve.
• C) It is possible to replicate the cash flows of a coupon bond using zero-coupon bonds.
• D) Because the coupon bond provides cash flows at different points in time, the yield to maturity of a coupon bond is the simple average of the yields of the zero-coupon bonds of equal and shorter maturities.

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Definitions:

Antecedent

In logic and grammar, it refers to the conditional clause or phrase to which a pronoun refers back; in logic, also the first part of a conditional statement.

Consequent

The “then” component in a hypothetical proposition.

Disjunctive Premise

In logic, a premise that presents two or more options or possibilities, typically in an "either/or" format, one of which must be true.

Hypothetical Proposition

A statement that presents a conditional scenario, often structured in an "if-then" format, used to explore logical outcomes.