Which of the Following Statements Is FALSE

question 108

Multiple Choice

Which of the following statements is FALSE?

• A)If a bond trades at a premium,its yield to maturity will exceed its coupon rate.
• B)A bond that trades at a premium is said to trade above par.
• C)When a coupon-paying bond is trading at a premium,an investor's return from the coupons is diminished by receiving a face value less than the price paid for the bond.
• D)Holding fixed the bond's yield to maturity,for a bond not trading at par,the present value of the bond's remaining cash flows changes as the time to maturity decreases.

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Definitions:

Prepaid Rent Payment

An advance payment of rent that is made before it is due, typically recorded as an asset on a balance sheet until utilized.

Balance Sheet

A summary report of a business's assets, debts, and equity held by shareholders, captured at a certain date to represent the organization's fiscal status.

Monthly Rent

The regular payment made to a landlord or property owner for the use of premises or equipment for a month.

Office Supplies

Items used in an office for daily operations, such as paper, pens, and staplers, typically classified as short-term assets.