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.

Question

Quizplus · Accepted Answer

Prior to its maturity date, the price of a zero-coupon bond is actually less than its face value because it does not pay any coupon payments. It is sold at a discount to its face value and then redeemed at the face value upon maturity.

Which of the Following Statements Is False