Which of the Following Statements Regarding Bonds and Their Terms

question 109

Multiple Choice

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

• A) The amount of each coupon payment is determined by the coupon rate of the bond.
• B) Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.
• C) The zero-coupon bond has no periodic interest payments.
• D) Treasury bills are U.S. government bonds with a maturity of up to one year.

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