Choose the Statement That Is Incorrect

Choose the statement that is incorrect.

A) A bond that you buy for $50 and pays you $5 a year has an interest rate of 10 percent a year.
B) Stocks, bonds, short- term securities, and loans are financial assets.
C) If the asset price rises, other things remaining the same, the interest rate falls.
D) The price of an asset is determined first, then the interest rate is determined.
E) The interest rate on a financial asset is the interest received expressed as a percentage of the price of the asset.