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 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.

Which of the following statement is FALSE?Group of answer choicesCoupon is the stated interest payment made on a bond.Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.Ordinary shares are generally riskier assets than bonds.When interest rates rise, bond prices fall.Short-term bonds have less interest rate risk than long-term bonds.

Which one of the following statements is NOT true?Group of answer choicesThe yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.A bond's yield to maturity changes daily as interest rates increase or decrease.The realised yield is the yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.The yield to maturity is the yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.The term structure of interest rates shows the relationship between the yield to maturity and time to maturity.

Which one of the following statements about bonds is correct?Group of answer choicesThe yield on a bond for a bond investor is generally a fixed rate.Bond prices vary inversely with interest rates.Most bonds pay interest annually.Bond coupon rates vary with interest rates.