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:

Sherman Act

A foundational antitrust law in the United States aimed at preventing monopolies and promoting competition among businesses.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at increasing economic competition and preventing unfair business practices.

Wheeler-Lea Act

An amendment to the Federal Trade Commission Act in the United States, focusing on protecting consumers against unfair or deceptive acts in commerce.

Cardiovascular Mortality

Deaths caused by diseases related to the heart and blood vessels, often used as a measure of the public health impact of cardiovascular disease.