Which of the following statements is FALSE?
A: The amount of each coupon payment is determined by the coupon rate of the bond.
B: Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.
C: The simplest type of bond is a zero-coupon bond.
D: Treasury bills are U.S. government bonds with a maturity of up to one year.
A: The amount of each coupon payment is determined by the coupon rate of the bond.
B: Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.
C: The simplest type of bond is a zero-coupon bond.
D: Treasury bills are U.S. government bonds with a maturity of up to one year.
举一反三
- If you have a bond that pays a lump sum at the time of maturity, it is A: called a zero-coupon bond. B: worth more than a bond with coupon payments. C: riskier than a bond with coupon payments. D: a safer investment than a perpetuity.
- A coupon bond pays the owner of the bond a fixed interest payment (coupon payment) every year until the maturity date, when a specified final amount (face value or par value) is repaid. （ ） A: True B: False
- A discount bond ( ). A: is also called a zero-coupon bond. B: is bought at a price below its face value C: its face value is repaid at the maturity date. D: is also called simple payment bond.
- As the coupon rate of a bond increases, the bond's:() A: face value increases B: current price decreases C: interest payments increase D: maturity date is extended
- The coupon rate of bond is the interest rate specified in the bond, which is equal to the ratio of the annual interest over the value of bond.