Which Statement Is False

question 166

Multiple Choice

Which statement is false?

• A)The periodic interest payment on a bond is based upon the market rate of interest.
• B)Typically when a company issues a bond,the company will sell the bonds to an underwriter,who in turn sells the bonds to the general public.
• C)The nominal rate of interest and the market rate of interest are usually different on the date the bond is issued.
• D)If a bond is sold at a price that is greater than face value,it is said to be sold at a premium.
• E)If a bond is sold at a price that is less than face value,it is said to be sold at a discount.

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Definitions:

Fundamental Attribution Error

A cognitive bias where people overemphasize personal traits and underestimate situational factors when explaining others' behaviors.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and their failures to external factors.

Self-Fulfilling Prophecy

A belief or expectation that influences behaviors in a way that causes the belief to become a reality.

Projection

A defense mechanism where an individual ascribes their own unacceptable thoughts, feelings, or motives to another person.