Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A)Zero-coupon bonds are also called pure discount bonds.
• B)The IRR of an investment opportunity is the discount rate at which the NPV of the investment opportunity is equal to zero.
• C)The yield to maturity for a zero-coupon bond is the return you will earn as an investor from holding the bond to maturity and receiving the promised face value payment.
• D)When prices are quoted in the bond market,they are conventionally quoted in increments of $1000.

---

Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (or standard) cost, multiplied by the quantity of materials purchased.

Standard Quantity

The expected amount of materials or inputs required to produce a single unit of product under normal conditions.

Actual Materials Purchased

The total quantity and cost of raw materials bought by a company for production during a specific period.

Standard Price

A predetermined cost assigned to materials, labor, and overhead for budgeting and cost-control purposes.