Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)Bond prices converge to the bond's face value due to the time effect,but simultaneously move up and down due to unpredictable changes in bond yields.
• B)As interest rates and bond yields fall,bond prices will rise.
• C)Bonds with higher coupon rates are more sensitive to interest rate changes.
• D)Shorter maturity zero-coupon bonds are less sensitive to changes in interest rates than are longer-term zero-coupon bonds.

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Definitions:

Two-Tier Wage System

An employment system where new employees are paid less than existing employees for doing the same job, often used to reduce costs.

Product Market

The marketplace where final goods or services are traded between sellers and buyers, focusing on competition, supply, and demand dynamics.

Customer Bases

The group of customers who repeatedly purchase the goods or services of a business.

State Laws

Regulations and legal standards established by individual states within a country, which govern various aspects of life, including employment and business operations.