Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

• A)The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default free bond at its current price and hold it to maturity.
• B)The yield to maturity of a bond is the discount rate that sets the future value of the promised bond payments equal to the current market price of the bond.
• C)Financial professionals also use the term spot interest rates to refer to the default-free zero-coupon yields.
• D)When we calculate a bond's yield to maturity by solving the formula,Price of an n-period bond = + + ...+ ,the yield we compute will be a rate per coupon interval.

---

Definitions:

Real Property

Pertains to land and anything permanently attached to it, including buildings and structures.

Right to Revoke Acceptance

A legal prerogative under certain conditions allowing a buyer to cancel a contract after having previously accepted goods or services.

Additional Advertising Fees

Fees charged in addition to a base rate or cost, specifically for promotional or marketing activities.

Right to Resell

The legal ability to sell a product or property after it has been purchased from the original seller.