Which of the following statements about zero coupon bonds is FALSE? A. When the bonds mature, the issuing firm is faced with a small cash outflow relative to the cash inflow the firm receives when the bonds are initially issued. B. Zero coupon bonds have lower interest rate risk than bonds with high coupons. C. Zero coupon bonds are an extremely popular way for corporations to borrow money. D. Most zero coupon bonds in the U.S. are government issues.

Activity 2: Q3) Which of the following statements is FALSE? A A bond trades at par when its coupon rate is equal to its yield to maturity. B A bond trades at premium when its coupon rate is greater than its yield to maturity. C A bond that has zero coupon rate is a discount bond. D If a coupon bond's yield to maturity exceeds its coupon rate, the present value of its cash flows at the yield to maturity will be greater than its face value. SUBMIT

Which of the following statements is FALSE?AA bond trades at par when its coupon rate is equal to its yield to maturity.BA bond trades at premium when its coupon rate is greater than its yield to maturity.CA bond that has zero coupon rate is a discount bond.DIf a coupon bond's yield to maturity exceeds its coupon rate, the present value of its cash flows at the yield to maturity will be greater than its face value.SUBMIT

Which of the following statements is FALSE?a.The time remaining until the repayment date is known as the term of the bond.b.Bonds are usually less risky than shares.c.Bonds are securities sold by governments and corporations to raise money from investors today in exchange for promised future payments.d.By convention the coupon rate is expressed as an effective annual rate.e.Bonds typically make two types of payments to their holders.

Activity 2: Q1) Which of the following statements is FALSE? A Bond is a liability for issuer and an asset for holder. B By convention the coupon rate is expressed as an effective annual rate. C Bonds typically make two types of payments to their holders. D The time remaining until the repayment date is known as the term of the bond. SUBMIT

Which of the following statements is false? A. Bonds with higher coupon rates, all else being equal, have lower durations.  B. Bonds with shorter maturities, all else being equal, have higher durations.  C. The higher the convexity of a bond (in absolute terms) the more inaccurate its duration is as a measure of interest rate sensitivity.  D. A zero coupon bond with a longer maturity is more sensitive to changes in the interest rate than a shorter maturity zero coupon bond.