Which of the following is false?
A) For bond buyers,the higher the yield the better it is for them.
B) For bond buyers,the higher the price of the bond the better it is for them.
C) For bond buyers,the lower the yield the worse it is for them.
D) The term yield on a bond is the same as the term interest rate on a bond.

Question

Quizplus · Accepted Answer

For bond buyers, the lower the price of the bond the better it is for them, not the higher. The higher the price, the lower the yield, which is worse for bond buyers. Option D is also false because yield and interest rate are not synonymous, although they are related. Yield is the return on a bond investment, taking into account its price, coupon rate, and time to maturity. Interest rate refers to the fixed percentage of the bond's face value paid to the bondholder periodically as interest.

Which of the Following Is False