Which of the Following Is False

question 84

Multiple Choice

Which of the following is false?

• A) As the price paid for a bond rises, the yield declines.
• B) If you purchase stock from an individual that currently owns the stock, you are buying it in the secondary market.
• C) The yield on a bond is another term for the coupon rate on a bond.
• D) A rating of Aaa from Moody's is the highest bond rating given by that rating agency.

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Definitions:

Trading Debt Securities

Refers to the buying and selling of debt instruments such as bonds in the financial markets, aiming for profits from changes in their prices.

Accounting Differences

Discrepancies that arise between accounting practices, often due to different standards or interpretations.

Unrealized Gain/Loss

Gains or losses on investments that the company holds but has not yet sold, and thus they have not realized the gains or losses.

Fair Value

An estimated market price of an asset or liability, reflecting the value for which it could be exchanged or settled between knowledgeable, willing parties.