Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A) The IRR 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 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 = + + ... + , the yield we compute will be a rate per coupon interval.

---

Definitions:

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving ritual practices and moral codes.

Healthy Spirituality

A state of being in which an individual experiences peace and harmony in their life through a strong sense of connection to something greater than themselves, often leading to positive well-being and life satisfaction.

Break Old Habits

The process of changing established patterns of behavior, typically requiring effort and persistence over time.

Positive Habits

Regularly practiced behaviors or routines that have a beneficial impact on an individual's mental or physical well-being.