Which of the Following Statements Is FALSE

question 86

Multiple Choice

Which of the following statements is FALSE?

• A) With registered bonds, on each coupon payment date, the bond issuer consults the firm's registered owners and mails each bondholder a check (or directly deposits the coupon payment into the owner's brokerage account).
• B) If a coupon bond is issued at a discount, it is called an original issue discount bond.
• C) The face value or principal amount of the bond is denominated in standard increments, most often $1,000.
• D) In a public offering, the indenture lays out the terms of the bond issue.

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Definitions:

Coupon Bond

A type of bond that offers periodic interest payments to the holder through fixed "coupons" and the return of the principal at maturity.

Yield To Maturity

The total return expected on a bond if held until its maturity date, including both interest payments and capital gains.

Interest Annually

The amount of interest earned or paid over a one-year period.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, factoring in its current market price, face value, interest rates, and time to maturity.