Which of the Following Statements Is False

question 88

Multiple Choice

Which of the following statements is false?

• A) The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.
• B) If the zero-coupon yield curve is downward sloping, the yield to maturity will decrease with the coupon rate.
• C) The information in the zero-coupon yield curve is sufficient to price all other risk-free bonds.
• D) 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.

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Definitions:

Primary Promise

A fundamental obligation in a contract that is central to the agreement's purpose.

Admission Exception

A legal principle allowing statements by a party to be used as evidence against them, typically in a court of law.

Statute of Fraids

Likely intended to refer to the "Statute of Frauds," which is a legal concept requiring certain types of contracts to be in writing to be enforceable.

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing and signed by the parties involved, in order to be enforceable.