Which Statement Is False

Multiple Choice

Which statement is false?

A) The periodic interest payment on a bond is based upon the market rate of interest.
B) Typically when a company issues a bond,the company will sell the bonds to an underwriter,who in turn sells the bonds to the general public.
C) The nominal rate of interest and the market rate of interest are usually different on the date the bond is issued.
D) If a bond is sold at a price that is greater than face value,it is said to be sold at a premium.
E) If a bond is sold at a price that is less than face value,it is said to be sold at a discount.