Which of the Following Statements Is FALSE

question 37

Multiple Choice

Which of the following statements is FALSE?

• A)One advantage of quoting the yield to maturity rather than the price is that the yield is independent of the face value of the bond.
• B)Unlike the case of bonds that pay coupons,for zero-coupon bonds,there is no simple formula to solve for the yield to maturity directly.
• C)Because we can convert any bond price into a yield,and vice versa,bond prices and yields are often used interchangeably.
• D)The IRR of an investment in a bond is given a special name,the yield to maturity (YTM).

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Definitions:

Profits Maximization

The process or strategy aimed at increasing the difference between the total revenue and total costs of a business to the highest possible level.

Price Received

The amount of money paid to a seller for the sale of goods or services.

Production Function

A production function is a mathematical model that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Supply Function

A mathematical relationship that depicts how the quantity of goods supplied by producers changes in response to different factors, such as price.