Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Given the spot interest rates, we can determine the price and yield of any other default-free bond.
• B) As the coupon increases, earlier cash flows become relatively less important than later cash flows in the calculation of the present value.
• C) 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.
• D) When Canadian bond traders refer to "the yield curve," they are often referring to the coupon-paying treasury yield curve.

---

Definitions:

Erik Erikson

A psychoanalyst known for his theory on the psychosocial development of human beings.

Trust Versus Mistrust

The first stage in Erikson's theory of psychosocial development, where infants learn to trust or mistrust their caregivers and the world based on their interactions.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.

Emerging Adulthood

A life stage between adolescence and full-fledged adulthood, typically ranging from the late teens through the twenties, characterized by exploration and uncertainty in various aspects of life such as love, work, and worldview.