Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Given the spot interest rates, we can determine the price and yield of any other default-free bond.
• B) As the coupon increases, earlier cash flows become relatively less important than later cash flows in the calculation of the present value.
• C) When the yield curve is flat, all zero-coupon and coupon-paying bonds will have the same yield, independent of their maturities and coupon rates.
• D) When Canadian bond traders refer to "the yield curve," they are often referring to the coupon-paying treasury yield curve.

---

Definitions:

Null Hypotheses

A statement or hypothesis set for statistical testing, positing that there is no significant difference or effect.

Alternative Hypotheses

In hypothesis testing, it is the statement that suggests a possible relationship between variables or a difference in groups, contrasting the null hypothesis.

Heart Rate

The number of heartbeats per unit of time, usually expressed in beats per minute (bpm).

Energy Drink

A type of beverage containing stimulant compounds, typically caffeine, which is marketed as providing mental and physical stimulation.