Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) The amount of earned interest kept by an investor will depend on how the interest is taxed.
B) The equivalent after-tax interest rate is r(1 - τ) .
C) The highest interest rate,for a given horizon,is the rate paid on U.S.Treasury securities.
D) It is important to use a discount rate that matches both the horizon and the risk of the cash flows.