Question

In: Finance

Which of the following statements is FALSE? A. Treasury Bills are U.S. government zero-coupon bonds with...

Which of the following statements is FALSE? A. Treasury Bills are U.S. government zero-coupon bonds with a maturity of up to one year. B. Zero-coupon bond almost always sells at a discount. C. Coupon bond can sell at a discount, at par, or at a premium. D. Zero-Coupon Bond does not make coupon payments E. Coupon bond pays only face value and no coupon at maturity.

Solutions

Expert Solution

Answer : Option E [ Coupon bond pays only face value and no coupon at maturity ]
Explanation : Coupon bond pays face value as well as coupon at maturity.
All the other options given are true

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