Which of the Following Statements Is FALSE

question 110

Multiple Choice

Which of the following statements is FALSE?

• A)The principal or face value of a bond is the notional amount we use to compute the interest payments.
• B)Payments are made on bonds until a final repayment date,called the term date of the bond.
• C)The coupon rate of a bond is set by the issuer and stated on the bond certificate.
• D)The promised interest payments of a bond are called coupons.

---

Definitions:

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, or to improve existing ones, often involving considerable investment and risk.

R&D Expenditures

Costs incurred in the research and development of new products or services, aiming to improve or innovate offerings.

Investors

individuals or institutions that allocate capital with the expectation of receiving financial returns, often by purchasing stocks, bonds, or other investment vehicles.

Software Development Costs

The costs associated with the development, design, and implementation of software, which may be capitalized or expensed depending on their nature and benefit period.