Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A)Zero-coupon bonds are also called pure discount bonds.
• B)The IRR of an investment opportunity is the discount rate at which the 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 $1000.

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Definitions:

Sale

A sale involves the transaction of goods or services from seller to buyer in exchange for money or other compensation.

Asset

An asset held or managed by a person, business, or nation, anticipated to yield future advantages.

Cash Received

The total amount of cash collected by a company during a specific period, including revenues, loans, and investments.

Salvage Value

The estimated residual value of an asset at the end of its useful life, which can be recovered through disposal.