Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

• A) When a bond is trading at a discount, the price drop when a coupon is paid will be larger than the price increase between coupons, so the bond's discount will tend to decline as time passes.
• B) When a bond trades at a price equal to its face value, it is said to trade at par.
• C) As interest rates and bond yield rise, bond prices will fall.
• D) Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupon are paid.

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Definitions:

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, crucial for maintaining physical health.

Sympathetic

Part of the autonomic nervous system that prepares the body for stress-related activities, often referred to as the "fight or flight" response.

Parasympathetic

The part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity.

Thoracolumbar Division

A region of the spine made up of the thoracic and lumbar vertebrae, often referred to in studies relating to spinal injuries or abnormalities.