Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) The issuer of a bond is a borrower.
• B) The person who buys a bond is a lender.
• C) Interest earned on corporate bonds is exempt from federal income taxes.
• D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.

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Definitions:

Perceived Inequity

A feeling of unfairness experienced when an individual perceives a disparity between their inputs and outputs compared to others in a similar situation.

Cafeteria Compensation Plan

A flexible employee benefits plan allowing employees to choose from a variety of pre-tax salary options and benefits.

Compensation Plans

Structured pay and benefits schemes designed to attract, retain, and motivate employees, often including salaries, bonuses, and other incentives.

Contingent Time Off

Leave from work that is granted based on specific conditions or occurrences, which may include emergencies, personal reasons, or meeting certain work performance criteria.