Which of the following statements is FALSE?
A) Unlike the case of bonds that pay coupons, for zero-coupon bonds, there is no simple formula to solve for the yield to maturity directly.
B) Because we can convert any bond price into a yield, and vice versa, bond prices and yields are often used interchangeably.
C) The internal rate of return (IRR) of an investment in a bond is given a special name, the yield to maturity (YTM) .
D) One advantage of quoting the yield to maturity rather than the price is that the yield is independent of the face value of the bond.
Correct Answer:
Verified
Q36: Which of the following risk-free, zero-coupon bonds
Q37: Use the information for the question(s) below.
The
Q38: Which of the following best describes a
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