Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) If the bond trades at a discount, an investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond.
• B) Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at, or very near to, par.
• C) Coupon bonds always trade for a discount.
• D) At any point in time, changes in market interest rates affect a bond's yield to maturity and its price.

---

Definitions:

Outsourcing

The practice of hiring third parties to perform services or create goods that traditionally were performed in-house by the company's own employees.

Solicitation

The act of requesting or seeking bids, proposals, or quotes from vendors for the supply of goods or services.

Bidders

Entities or individuals that propose their services or products in response to a request for proposal or tender.

Requesting

The act of formally or informally asking for something to be given or done.