Which of the Following Statements Is False

question 88

Multiple Choice

Which of the following statements is false?

• A) The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.
• B) If the zero-coupon yield curve is downward sloping, the yield to maturity will decrease with the coupon rate.
• C) The information in the zero-coupon yield curve is sufficient to price all other risk-free bonds.
• D) 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.

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Definitions:

Primacy Effect

The tendency to remember information that is presented first better than information that is presented later on.

Impression Formation

The psychological process by which individuals form opinions and judgments about other people based on available information.

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a social context.

Social World

The domain of human interaction and relationships, encompassing both social structures and individual social behaviors.