Which of the following statements is FALSE?
A)Bond traders typically quote bond prices rather than bond yields.
B)Treasury bills are zero-coupon bonds.
C)Zero-coupon bonds always trade at a discount.
D)The yield to maturity is typically stated as an annual rate by multiplying the calculated YTM by the number of coupon payment per year,thereby converting it to an APR.

Question

Quizplus · Accepted Answer

Bond traders typically quote bond yields rather than bond prices. Bond prices can vary based on factors such as supply and demand, credit risk, and time to maturity. In contrast, bond yields take into account these same factors and provide a measure of the return an investor can expect from holding the bond.

Which of the Following Statements Is FALSE