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.

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Definitions:

Cumulative Quantity Discounts

Discounts the customer receives for buying a certain amount of a product over a stated period, such as one year.

Price Reductions

A strategy where the selling price of goods or services is lowered, often temporarily, to attract more customers or to clear inventory.

Channel Member

A participant in a distribution or supply chain who plays a role in moving products from producers to consumers.

Distribution Policies

Guidelines and strategies that determine how a product moves from production to the consumer.