Which of the Following Statements Is FALSE

question 72

Multiple Choice

Which of the following statements is FALSE?

• A)Given the spot interest rates,we can determine the price and yield of any other default-free bond.
• B)As the coupon increases,earlier cash flows become relatively less important than later cash flows in the calculation of the present value.
• C)When the yield curve is flat,all zero-coupon and coupon-paying bonds will have the same yield,independent of their maturities and coupon rates.
• D)When U.S.bond traders refer to "the yield curve," they are often referring to the coupon-paying Treasury yield curve.

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