Which of the Following Statements Regarding Bonds and Their Terms

question 19

Multiple Choice

Which of the following statements regarding bonds and their terms is FALSE?

• A) Zero-coupon bonds are also called pure discount bonds.
• B) The internal rate of return (IRR) of an investment opportunity is the discount rate at which the net present value (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 $1,000.

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Definitions:

Inequality

Refers to an uneven distribution of resources, opportunities, and rights among individuals or groups, leading to disparities in wealth, health, and social status.

Character Theories

Theories related to the study of personality that focus on the moral and ethical qualities of individuals.

Natural Liberty

The concept of freedom from artificial or man-made restrictions, promoting the idea of living in accordance with natural laws.

Categorical Imperative

An ethical principle proposed by Immanuel Kant suggesting that one should act only according to that maxim by which you can at the same time will that it should become a universal law.