Which of the Following Statements Is FALSE

question 60

Multiple Choice

Which of the following statements is FALSE?

• A)A bond trades at par when its coupon rate is equal to its yield to maturity.
• B)The clean price of a bond is adjusted for accrued interest.
• C)The price of the bond will drop by the amount of the coupon immediately after the coupon is paid.
• D)If a coupon bond's yield to maturity exceeds its coupon rate,the present value of its cash flows at the yield to maturity will be greater than its face value.

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Definitions:

Grizzly Bear

A large species of brown bear inhabiting North America, recognized for its size and significant strength.

Foreseeable Harm

A concept in law referring to the anticipation of harm that a reasonable person in similar circumstances would expect.

Contributory Negligence

A legal doctrine under which a party's own negligence contributes to their harm and may limit or bar their recovery for damages.

Comparative Negligence

A principle of tort law that compares the fault of each party involved in an accident and apportions damages accordingly.