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:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Production Level

The quantity of goods or services that are produced within a given timeframe by a business.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period.

Volume Of Activity

A measure of the total amount of work performed or output produced in a specific period.