Which of the following statements regarding bonds and their terms is FALSE?
A) The amount of each coupon payment is determined by the coupon rate of the bond.
B) Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.
C) The zero-coupon bond has no periodic interest payments.
D) Treasury bills are U.S. government bonds with a maturity of up to one year.

Question

Quizplus · Accepted Answer

Prior to its maturity date, the price of a zero-coupon bond is always less than its face value, not greater than.

Which of the Following Statements Regarding Bonds and Their Terms