Which of the Following Statements Is FALSE

question 89

Multiple Choice

Which of the following statements is FALSE?

• A)The amount of each coupon payment is determined by the coupon rate of the bond.
• B)Prior to its maturity date,the price of a zero-coupon bond is always greater than its face value.
• C)The simplest type of bond is a zero-coupon bond.
• D)Treasury bills are U.S.government bonds with a maturity of up to one year.

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Definitions:

Social Security Rate

The percentage rate at which income is taxed to fund the Social Security program.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for some younger people with disabilities.

Net Pay

The amount of money received by an employee after all deductions, such as taxes and retirement contributions, have been subtracted from their gross salary.

Social Security Tax

A mandatory tax levied on both employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.