Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)By convention,practitioners always plot the yield of the most senior issued bonds,termed the on-the-run-bonds.
• B)We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
• C)If the zero coupon yield curve is upward sloping,the resulting yield to maturity decreases with the coupon rate of the bond.
• D)The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

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Definitions:

Performance Based-Reward Systems

Reward mechanisms that tie compensation or recognition to the achievement of specific performance criteria, intended to motivate and incentivize high levels of performance.

Flexible Benefit Plans

Employee benefit programs that allow individuals to choose from a range of benefit options that best suit their personal or family needs.

Group Rates

Special discounted prices offered to a defined group of people, typically for services or admissions.

Performance Based Reward Systems

Performance-based reward systems are compensation strategies that tie rewards, such as pay or bonuses, directly to the level of performance or achievement of specific outcomes.