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Which of the Following Statements Is FALSE

Question 45

Multiple Choice

Which of the following statements is FALSE?


A) By convention,practitioners always plot the yield of the most senior issued bonds,termed the on-the-run-bonds.
B) We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
C) If the zero coupon yield curve is upward sloping,the resulting yield to maturity decreases with the coupon rate of the bond.
D) The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

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