Which of the Following Statements Is False

question 27

Multiple Choice

Which of the following statements is false?

• A) By convention, practitioners always plot the yield of the most senior issued bonds, termed the on-the-run-bonds.
• B) We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
• C) If the zero-coupon yield curve is upward sloping, the resulting yield to maturity decreases with the coupon rate of the bond.
• D) The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

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Definitions:

Modal Personal Orientation

In Holland’s theory, an aspect of personality that is a typical and preferred style or approach to dealing with social and environmental tasks. Most jobs or careers will be compatible with one of the six orientations: realistic, investigative, artistic, social, enterprising, and conventional.

Vocational Environments

Work settings or employment contexts that are focused on career and technical education, aimed at preparing individuals for specific trades or professions.

Vocational Interests

These are preferences for certain types of work or careers, which reflect an individual's personality, skills, and values.

Predictor

A variable or factor that can be used to forecast or anticipate the outcome of a future event.