Which of the Following Statements Is FALSE

question 115

Multiple Choice

Which of the following statements is FALSE?

• A)Investors pay less for bonds with credit risk than they would for an otherwise identical default-free bond.
• B)The yield to maturity of a defaultable bond is equal to the expected return of investing in the bond.
• C)The risk of default,which is known as the credit risk of the bond,means that the bond's cash flows are not known with certainty.
• D)For corporate bonds,the issuer may default-that is,it might not pay back the full amount promised in the bond certificate.

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Definitions:

Prevalence Rate

The proportion of individuals in a population having a particular disease or condition at a specific time.

Overweight Adults

Individuals aged 18 or older who have a Body Mass Index (BMI) of 25 to 29.9, categorizing them as overweight.

Gender Differences

The distinctions in characteristics, roles, behavior, or physiological attributes typically associated with being male or female.

High Blood Pressure

A medical condition where the force of the blood against artery walls is too high, often leading to health risks like heart disease.