Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) We can use the law of one price to compute the price of a coupon bond from the prices of zero-coupon bonds.
• B) The plot of the yields of coupon bonds of different maturities is called the coupon-paying yield curve.
• C) It is possible to replicate the cash flows of a coupon bond using zero-coupon bonds.
• D) Because the coupon bond provides cash flows at different points in time, the yield to maturity of a coupon bond is the simple average of the yields of the zero-coupon bonds of equal and shorter maturities.

---

Definitions:

mL

A milliliter (mL) is a unit of volume in the metric system, equivalent to one-thousandth of a liter.

Tuberculin Syringe

A small, calibrated syringe used for TB testing, precise measurements of small volumes, and allergy tests.