Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)By convention,practitioners always plot the yield of the most senior issued bonds,termed the on-the-run-bonds.
• B)We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
• C)If the zero coupon yield curve is upward sloping,the resulting yield to maturity decreases with the coupon rate of the bond.
• D)The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

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Definitions:

Customizing

The process of making or modifying something according to a customer's individual requirements.

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products based on a specific activity basis, such as labor hours or machine hours.

Machine-Hours

A calculation of activity or production volume, taking into account the length of time machines are in use.

Direct Labor-Hours

The total hours of work contributed by employees who are directly involved in the manufacturing or production process.