Which of the Following Statements Regarding Bonds and Their Terms

Multiple Choice

Which of the following statements regarding bonds and their terms is FALSE?

A) Bonds are securities sold by governments and corporations to raise money from investors today in exchange for a promised future payment.
B) By convention, the coupon rate is expressed as an effective annual rate.
C) Bonds typically make two types of payments to their holders.
D) The time remaining until the repayment date is known as the term of the bond.