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 prices. Bond prices can be influenced by a variety of factors, such as changes in market interest rates, credit ratings, and market liquidity. Yield, on the other hand, is a standardized measure that reflects the return on investment for a bond of a given maturity, coupon, and credit rating. Thus, bond traders typically quote bond yields rather than bond prices to make it easier for investors to compare bonds with different characteristics.

Which of the Following Statements Is False