Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)The internal rate of return (IR
• R)of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default free bond at its current price and hold it to maturity.
• B)The yield to maturity of a bond is the discount rate that sets the future value (F
• V)of the promised bond payments equal to the current market price of the bond.
• C)Financial professionals also use the term spot interest rates to refer to the default-free zero-coupon yields.
• D)When we calculate a bond's yield to maturity by solving the formula, Price of an n-period bond = + + ...+ ,1 + YT
• M) The yield we compute will be a rate per coupon interval.

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Definitions:

Arithmetic

A branch of mathematics dealing with the study and manipulation of numbers through operations such as addition, subtraction, multiplication, and division.

Addresses

Addresses in computing are numerical representations that indicate specific locations in memory where data can be found or stored.

Pointers

A variable that stores the address of another variable.

Declarations

Instructions in a program that list variables and their types.