Which of the following statements is FALSE?
A)By convention,practitioners always plot the yield of the most senior issued bonds,termed the on-the-run-bonds.
B)We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
C)If the zero coupon yield curve is upward sloping,the resulting yield to maturity decreases with the coupon rate of the bond.
D)The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is FALSE?
A)By convention,practitioners always plot the yield of the most senior issued bonds,termed the on-the-run-bonds.
B)We can determine the no-arbitrage price of a coupon bond by discounting its cash flows using the zero-coupon yields.
C)If the zero coupon yield curve is upward sloping,the resulting yield to maturity decreases with the coupon rate of the bond.
D)The yield to maturity of a coupon bond is a weighted average of the yields on the zero-coupon bonds.

Which of the Following Statements Is FALSE