Which of the Following Statements Is False

question 90

Multiple Choice

Which of the following statements is false?

• A) Because the cash flows promised by the bond are the most that bondholders can hope to receive, the cash flows that a purchaser of a bond with credit risk expects to receive may be less than that amount.
• B) By consulting bond ratings, investors can assess the credit-worthiness of a particular bond issue.
• C) Because the yield to maturity for a bond is calculated using the promised cash flows, the yield of bonds with credit risk will be lower than that of otherwise identical default-free bonds.
• D) A higher yield to maturity does not necessarily imply that a bond's expected return is higher.

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Definitions:

Attachment Theory

A theory focused on how early relationships with caregivers shape an individual's long-term emotional development, specifically how they form and maintain close relationships.

Object Relations Theories

A group of theories in psychoanalysis that focus on the relationships between individuals and the external and internal objects in their environment, considering how these relationships affect emotions and behavior.

Attachment Theories

A group of theories in psychology that describe the dynamics of long-term and short-term interpersonal relationships between humans.

Separation Anxiety

A disorder typically seen in children, characterized by excessive fear and worry about being parted from those to whom the child is attached.