Which of the Following Statements Is FALSE

question 94

Multiple Choice

Which of the following statements is FALSE?

• A)The bond certificate typically specifies that the coupons will be paid periodically until the maturity date of the bond.
• B)The bond certificate indicates the amounts and dates of all payments to be made.
• C)The only cash payments the investor will receive from a zero-coupon bond are the interest payments that are paid up until the maturity date.
• D)Usually the face value of a bond is repaid at maturity.

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Definitions:

Matures

Refers to the final payment date of a financial instrument at which point the principal (and all remaining interest) is due to be paid.

Days

A unit of time measurement that typically represents a 24-hour period.

Loan

Funds lent with the anticipation of repayment plus an additional amount known as interest.

Interest

The fee for lending money, usually shown as a yearly percentage of the main sum.