Multiple Choice
Which of the following statements regarding bonds and their terms is FALSE?
A) Zero-coupon bonds are also called pure discount bonds.
B) The internal rate of return (IRR) of an investment opportunity is the discount rate at which the net present value (NPV) of the investment opportunity is equal to zero.
C) The yield to maturity for a zero-coupon bond is the return you will earn as an investor from holding the bond to maturity and receiving the promised face value payment.
D) When prices are quoted in the bond market, they are conventionally quoted in increments of $1,000.
Correct Answer:
Verified
Correct Answer:
Verified
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