Which of the Following Statements Is FALSE

question 16

Multiple Choice

Which of the following statements is FALSE?

• A)The yield to maturity for a zero-coupon bond is the return you will earn as an investor from holding the bond to maturity and receiving the promised face value payment.
• B)When prices are quoted in the bond market, they are conventionally quoted in increments of $1 000.
• C)The internal rate of return (IRR)of an investment opportunity is the discount rate at which the net present value (NPV)of the investment opportunity is equal to zero.
• D)Zero-coupon bonds are also called 'pure discount bonds'.

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