Which of the Following Statements Regarding Bonds and Their Terms

question 19

Multiple Choice

Which of the following statements regarding bonds and their terms is FALSE?

• A) Zero-coupon bonds are also called pure discount bonds.
• B) 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.
• C) 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.
• D) When prices are quoted in the bond market, they are conventionally quoted in increments of $1,000.

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Definitions:

Political Participation Rates

The proportion of eligible individuals who engage in activities to influence public policy or government, including voting, protesting, and campaigning.

Blacks

A term referring to individuals of African descent, often used in the context of discussing racial identities, histories, and communities.

Whites

A demographic group characterized by individuals with lighter skin tones, often used in the context of racial and ethnic identity.

Electoral College

A body of representatives from each U.S. state who formally elect the president and vice president, based on the popular vote within their states.